Court Finalizes Parity Class Action Settlement

On March 30, 2026, Judge Mae D’Agostino, U.S. District Judge of the Northern District of New York, granted final approval of a $1,415,000 settlement of an ERISA Parity Act class action. The Court’s approval concludes more than three years of litigation between a firm client, R.B., and United Behavioral Health.

RB participates in an employer-sponsored ERISA-regulated health plan. His then-minor son, JB, who has been diagnosed with numerous mental health disorders, was also covered under this plan. Under the Plan, R.B.’s employer delegated certain plan administration responsibilities to third-party administrators, including UBH, in exchange for a flat, per-member-per-month administrative fee. Through this arrangement, UBH makes coverage determinations with respect to behavioral health services under the Plan.

JB began treatment at Arivaca Boys Ranch (“Arivaca”), an Arizona-licensed residential treatment center, on June 8, 2020. Arivaca offered services such as individual counseling, group therapy, family therapy, and addiction recovery. On April 17, 2021, JB was discharged from Arivaca. By that point, JB had incurred—and RB had paid—$68,417.99 in costs for mental health and substance abuse treatment services rendered at Arivaca.

Arivaca sought coverage from UBH for JB’s treatment before his stay began. UBH initially denied the coverage request, and RB appealed. On June 10, 2020, UBH denied RB’s first appeal “[b]ased on the provider being unable to be authorized … due to the unproven therapy of equine therapy.” RB then appealed this denial, which UBH affirmed in a letter dated December 12, 2020.

In May 2021, R.B. commenced this litigation. His theory was that UBH’s denial of coverage violated the federal Mental Health Parity and Addiction Equity Act, because – he claimed – an offending “experimental” service provided at an analogous medical provider didn’t invalidate all coverage.

On September 14, 2023, the Court granted plaintiff’s motion for class certification. In 2025, the parties – after a day long mediation session – negotiated a resolution to the case. On March 30, 2026, the Court approved the settlement, which authorized the distribution of funds to the class.

The Court found that the amount of the settlement, $1,415,000, is “fair, reasonable, and adequate. The Settlement amount is within the range of reasonable settlements that would have been appropriate in this case, based on the nature of the claims, the potential recovery, the risks of litigation, and settlements that have been approved in other similar cases.”

The Court also approved plaintiff’s motion for the payment of attorneys’ fees out of the class recovery common fund. “Litigation of this [a]ction required counsel highly trained in class action law and procedure as well as the specialized issues presented here. Class Counsel [which includes Jordan Lewis, P.A.] possess these attributes, and their participation added immense value to the representation of this large Settlement Class. The record demonstrates that the Action involved a broad range of complex and novel challenges that Class Counsel met at every juncture.”

A copy of the decision is attached here.