New Jersey Court Rules in Favor of FBT Gibbons LLP, Allowing Continued Representation of Cigna in Underpayment Dispute

A New Jersey state court has denied a motion to disqualify FBT Gibbons LLP from representing Cigna and associated employer-sponsored health plans in a lawsuit concerning alleged underpayments to a plastic surgery practice. The court determined that the motion appeared to be an attempt to gain a strategic advantage rather than to protect client interests.

The case involves East Coast Advanced Plastic Surgery, LLC (ECAPS), which contends that Cigna underpaid for services rendered. ECAPS sought to remove FBT Gibbons from the case, arguing a conflict of interest. However, the court found insufficient evidence to support this claim and allowed FBT Gibbons to continue its representation.

This decision is part of a broader pattern of litigation involving Cigna and healthcare providers over reimbursement practices. For instance, in August 2026, ten California addiction treatment providers filed a lawsuit against Cigna, alleging the insurer paid only 16.58% of the $15.2 million billed for services provided to 83 patients between March 2022 and March 2026. The providers are seeking to recover the $12.7 million they claim remains unpaid. ([bhbusiness.com](https://bhbusiness.com/2026/08/24/10-sud-providers-sue-cigna-for-12-7m-in-underpayments/?utm_source=openai))

Additionally, in July 2026, the Third Circuit Court of Appeals partially revived a lawsuit by several New Jersey-based healthcare practices against Cigna. The providers alleged that Cigna underreimbursed them for out-of-network services, and the court found that the plaintiffs sufficiently alleged underpayment compared to their standard charges for similar services. ([law360.com](https://www.law360.com/appellate/articles/2500966/3rd-circ-revives-providers-underpayment-suit-against-cigna?utm_source=openai))

These cases underscore ongoing tensions between healthcare providers and insurers over reimbursement rates and practices, highlighting the complexities of healthcare billing and the legal challenges that can arise from disputes over payment structures.