Bed Bath & Beyond Inc. et al v. Anthem Inc et al

On January 30, 2024, bankrupt retailer Bed Bath & Beyond Inc. and its Official Committee of Unsecured Creditors filed an adversary complaint against Anthem Inc in the U.S. Bankruptcy Court for the District of New Jersey. The plaintiffs allege that Anthem, as the third-party administrator of Bed Bath & Beyond's self-funded employee health plan, improperly denied valid medical claims and mishandled plan assets. The lawsuit claims Anthem's actions breached the administrative services agreement and its fiduciary duties under ERISA, causing millions in damages by forcing the company to overpay for employee healthcare costs. The suit seeks to recover funds to distribute to creditors in the ongoing Chapter 11 proceedings.

The case remains pending or has no publicly reported final judgment as of the knowledge cutoff.

Whether Anthem improperly denied claims and mismanaged the health plan, thereby breaching its contract and fiduciary duties under ERISA. The dispute centers on the extent of Anthem's liability for overpayments and the recovery of those funds for the bankruptcy estate.

The case highlights the scrutiny of third-party health plan administrators' roles under ERISA, particularly within corporate bankruptcies, and impacts how distressed companies pursue pre-bankruptcy claims to maximize creditor recoveries.