Two lawsuits against Blues dismissed

May 10, 1994|By From Staff Reports

A federal judge has dismissed two lawsuits filed by the consulting firm of Booz Allen & Hamilton Inc. last year that alleged fraud and negligence by Blue Cross and Blue Shield of Maryland and eight of its directors.

The lawsuits, part of a tangle of litigation involving the health insurer, were filed in response to an earlier action brought by Blue Cross against Booz Allen. In that lawsuit, Blue Cross had alleged that the consulting firm misled it about the status of the insurance company's computer system and about a Booz Allen study on executive pay.

Booz Allen retaliated with litigation of its own, suing Blue Cross and its directors separately and alleging that they withheld crucial information from the consulting firm.

On Friday, U.S. District Judge J. Frederick Motz threw out Booz Allen's lawsuits, calling them "much ado about nothing."

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