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North Carolina Group Argues to Dismiss Blue Cross Lawsuit

Posted on: Wednesday, 13 July 2005, 18:01 CDT

Jul. 13--First Blue Cross and Blue Shield of North Carolina sued ProCare, alleging the group engaged in a conspiracy with a company insider to harm the insurer's business by revealing confidential information about Blue Cross' support of the U.S. Open in Pinehurst.

Now ProCare has fired back with a motion to dismiss the suit, arguing that it did no such thing.

The Chapel Hill insurer has alleged that, in circulating private details about Blue Cross' spending, ProCare violated a state law that prohibits unfair and deceptive trade practices. In court papers filed Monday in Wake County Superior Court, lawyers for ProCare argued that the law applies only to competitors -- a designation that is says does not apply to the advocacy group.

Blue Cross also alleged that ProCare, which was established in 2002 to fight the insurer's now-defunct plan to convert to a for-profit business, essentially stole internal documents by conspiring with a Blue Cross employee. ProCare's lawyers say the group didn't steal anything. It possesses only photocopies, not original documents or computer disks.

Gary Pearce, a Democratic political consultant who helped establish ProCare, said the group didn't ask anyone to obtain the documents. He said the group received them via fax, unsolicited, from an anonymous source that is still unknown to ProCare.

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Source: The News & Observer

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