Colton & Roesser Files Healthcare Class Action Lawsuit Against Transamerica on Medicare Medical Device Reimbursements.

SAN DIEGO--(BUSINESS WIRE)--April 29, 1999--

The law firm of Colton & Roesser today filed a class action lawsuit against Transamerica Corp. on behalf of the manufacturer of a medical device, the retailers of the device and physicians who use the device.

Neurotron Inc., a Maryland corporation based in Baltimore, develop a medical device which is used to evaluate and diagnose conditions affecting the sensory nervous system. Its products are widely used in over 22 health specialties throughout the United States.

As a third party administrator for Medicare, Transamerica has denied numerous claims for reimbursement by Medicare doctors and has sought to recover thousands of dollars in paid claims relating to Neurometer services. Apparently, Transamerica determined that the test did not fit within a particular billing code (CPT Code 95904), purely on an erroneous conclusion which confused the Neurotron device with another, non-compensable test.

The lawsuit seeks damages on behalf of Neurotron, distributors of its devices, and all Medicare doctors resident in the State of California, as well as injunctive relief requiring Transamerica to pay for the Neurotron services. The Plaintiffs are represented by the law firm of Colton & Roesser, located in Del Mar, Calif. The firm has an extensive experience in the prosecution of complex civil actions, including class actions, and has a special emphasis in the field of healthcare law.