Carroll v. HealthSouth
Arthroscopic & Laser Surgery Center
of San Diego, L.P., et al.

Case No. GIC806908

Superior Court of California, San Diego County

UPDATE (September 2017):
We expect payments to be mailed on 9/13/17.

If you were a patient who treated at Arthroscopic & Laser Surgery Center of San Diego, L.P. (and all affiliated entities operating under fictitious business names related thereto); SHC San Diego, Inc.; or HealthSouth Corporation at the HealthSouth Sports Medicine and Rehabilitation Center formerly located at or about 5471 Kearny Villa Road, Suite 202, San Diego, California; and/or who received any surgery or treatment from Defendant Gary Losse, M.D. at Arthroscopic & Laser Surgery Center of San Diego, L.P. or the Kearny Villa location, at any time from January 1, 1996 through December 15, 2000,
you may be entitled to a cash payment from this class action settlement.

Please read this website carefully, your legal rights may be affected.

This Notice concerns a settlement to resolve a class action lawsuit over whether HealthSouth Corporation (and affiliated entities) unlawfully concealed from the public that Gary Losse, M.D. was allegedly incompetent to render medical services, including performing surgery, because of alleged long-term undisclosed addiction to narcotics. The two sides disagree on the validity and merits of the claims asserted and how much money, if any, could have been awarded if the matter proceeded to trial.

Detailed information about the Settlement Agreement is available in the frequently asked questions and court documents section of this website. You can also find a copy of the Class Notice issued by the Court.

YOUR OPTIONS AND IMPORTANT DEADLINES IN THIS SETTLEMENT
FILE A CLAIM FORM If you wish to be included in this settlement and receive a settlement payment, you must mail by first-class mail a completed Claim Form to the address specified on the Claim Form, which must be postmarked on or before October 25, 2016, or you must submit a Claim Form online on or before October 25, 2016. Instructions on how to submit a valid and timely Claim Form are included in this Notice.
EXCLUDE YOURSELF /
OPT OUT
If you do NOT wish to participate in this settlement and do NOT wish to receive a cash settlement payment, you must request exclusion from the settlement by mailing a written letter to the Claims Administrator, Classaura LLC, which must be postmarked on or before October 25, 2016. You must sign the letter, and include your name, address, telephone number, and the last four digits of your social security number, and state clearly that you do not wish to be included in the settlement.
OBJECT If you wish to object to the settlement, the last day to file your written objection with the Court is October 25, 2016. Service of written objections on the Claims Administrator, Classaura LLC, and counsel for the parties, must be postmarked on or before October 25, 2016. Instructions on how to object to the settlement are included in this Notice.
DO NOTHING If you do nothing, you will NOT receive any settlement payment and will give up your right to sue HealthSouth Corporation (and affiliated entities) for the claims resolved by this settlement, as described in this Notice.

These rights and options, and the deadlines to exercise them are explained in this website. The Court in charge of this case still has to decide whether to approve the settlement. Settlement payments will be made if the Court approves the settlement and after any appeals are resolved. Please be patient.

What is this case about?

A proposed settlement has been reached in a class action lawsuit. The lawsuit claims that that Settling Defendants purportedly violated California law by allegedly concealing from the public that Gary Losse, M.D. was incompetent to render medical services, including performing surgery, because of his alleged long-term undisclosed addiction to narcotics. Settling Defendants deny that they violated the law in any way as alleged in the lawsuit. The Court has not decided which side was right. Instead, the parties have decided to settle the case.

Am I a class member?

You are a class member and may be eligible to receive a settlement benefit if you were patient and received treatment at Arthroscopic & Laser Surgery Center of San Diego, L.P. (and all affiliated entities operating under fictitious business names related thereto); SHC San Diego, Inc.; or HealthSouth Corporation at the HealthSouth Sports Medicine and Rehabilitation Center formerly located at or about 5471 Kearny Villa Road, Suite 202, San Diego, California; and/or who received any surgery or treatment from Defendant Gary Losse, M.D. at Arthroscopic & Laser Surgery Center of San Diego, L.P. or the Kearny Villa location, from January 1, 1996 through December 15, 2000. You should read the entire website carefully because your legal rights are affected whether you act or not.

What does the settlement provide?

A settlement fund of $5 million is being set up to pay claims to eligible class members, attorneys’ fees and costs, incentive award to the named plaintiffs, and the notice and claims administration costs. Each Class Member may file a claim, although the exact amount of your settlement payment depends on which Category or Categories you fall into and the number of valid claims filed. The complete Settlement Agreement is available in the court documents section of this website.

How much will my payment be?

All Participating Class Members are entitled to receive settlement payments. The amount of any individual settlement payment will be based on whether Class Members treated with Defendant Gary Losse, M.D. at Arthroscopic & Laser Surgery Center of San Diego, L.P. (“ALSC”); whether Class Members treated with some other physician than Defendant Gary Losse, M.D. at ALSC; and/or whether Class Members received rehabilitation treatment at the HealthSouth Sports Medicine and Rehabilitation Center formerly located at or about 5471 Kearny Villa Road, Suite 202, San Diego, California, as follows:

  • 94% of the Net Settlement Amount to be apportioned equally among Participating Class Members who received treatment by Gary Losse, M.D. at ALSC;
  • 3% of the Net Settlement Amount to be apportioned equally among Participating Class Members who received treatment by some other physician than Gary Losse, M.D. at ALSC; and
  • 3% of the Net Settlement Amount to be apportioned equally among Participating Class Members who received rehabilitation treatment at HealthSouth Sports Medicine and Rehabilitation Center formerly located at or about 5471 Kearny Villa Road, Suite 202, San Diego, California.

What happens now?

The Court will hold a hearing in this case on November 10, 2016, at 8:30 a.m., at the San Diego Superior Court in Department 62, located at 330 West Broadway, San Diego, CA 92101. At this hearing, the Court will determine whether to grant final approval of the settlement. If there are objections, the Court will consider them. The Court will listen to only those Class Members who have made timely written requests to speak at the hearing. You may appear at the hearing in person or through your attorney at your own cost, but you are not required to do so. This hearing may be rescheduled by the Court without further notice to you.