A group of radiology practices is invoking its state’s anti-SLAPP (Strategic Lawsuits Against Public Participation) statute, claiming a billing vendor is attempting to silence critics via litigation.
California Managed Imaging first filed suit against Zotec Partners in July, stating it experienced ongoing payment issues caused by “gross misconduct” on the part of the Carmel, Indiana-based vendor. The company responded by countersuing in August, calling CMI’s claim a “smokescreen” to hide the provider group’s own violation of a business agreement.
Radiologists have responded by accusing Zotec of attempting to stifle their legally protected ability to speak about billing concerns. CMI and its attorneys allege that, after they shared their concerns, Zotec “retaliated with a vengeance” and “wrongfully interfered” with compliance investigations and data access as the group attempted to deal with its billing challenges. They also believe Zotec was “exacting retribution” after CMI switched its billing management to Collaborative Imaging, a company that provides similar services and was founded by a former Zotec employee.
“Ironically, Zotec was so focused on ‘sending a message’ with this over-the-top cross-complaint that it pled claims that arise from the exercise of protected speech,” said CMI—a collaboration of practices including Pueblo Radiology, Modesto Radiological Medical Group, San Luis Imaging and Radiology Associates of San Luis Obispo—in its October court filing.
Los Angeles-based lawyer Vinay Kohli of the corporate law firm King & Spalding, which represents CMI, said he does not comment on pending litigation. A Zotec spokesman called the provider group's arguments "meritless" and said the vendor plans to file its opposition in the ordinary course of the case on Oct. 26.
California’s anti-SLAPP law requires defendants to prove they’re being sued for any act “in furtherance of the person’s right of petition or free speech under” the Constitution in connection with a public issue. It allows parties to file a complaint motion, which the court typically hears within 30 days, according to the Reporters Committee for the Freedom of the Press. CMI and its attorneys are urging the Superior Court of the State of California in Los Angeles County’s Central District to hear their request by Nov. 8 or sooner.
The state’s statute also grants winning parties the right to file a “SLAPP back” lawsuit to potentially recover damages for abusing the legal process, RCFP noted.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.