SpecialtyCare $725K Surgical Neurophysiologists Settlement

Danielle Toth

Editor

Published

September 22, 2026 4:36 PM

Updated

September 22, 2026

Who are the class members?

Class members are individuals who meet the following criteria:

SpecialtyCare Inc. employed them as a surgical neurophysiologist.
They were subject to the company’s training repayment agreement (also called the associate repayment agreement).
SpecialtyCare employed them at any time between Aug. 23, 2017, and June 10, 2026.

The settlement divides class members into two main subclasses:

Restraint of trade settlement subclass: All surgical neurophysiologists SpecialtyCare employed who were subject to the training repayment agreement at any time from Aug. 23, 2017, to June 10, 2026, except those who:

Signed a general release waiving claims against SpecialtyCare
Resigned within 30 days of employment
Qualified for a contractual exception to the repayment obligation as described in the agreement

TILA settlement subclass: All surgical neurophysiologists SpecialtyCare employed who were subject to the training repayment agreement at any time from Aug. 23, 2022, to June 10, 2026, except those who signed a general release waiving claims against SpecialtyCare.

Additionally, there is a group of current employees who, as of June 10, 2026, could receive debt relief if they leave before completing three years of work.

How much is the SpecialtyCare payout?

The settlement provides both monetary compensation and debt relief.

The settlement award calculation is multistep and designed to distribute the $725,000 settlement fund fairly:

Step 1: Any class member who previously paid SpecialtyCare under the training repayment agreement for leaving before they worked for three years will receive 100% of that amount from the gross settlement fund.
Step 2: The settlement administrator will divide the remaining balance into three pools, each proportional to the number of class members in:

The TILA settlement subclass (172 members)
The restraint of trade settlement subclass (371 members)
Current employees who may receive debt relief if they leave SpecialtyCare before three years of employment (125 members)

Step 3: The administrator will divide the TILA pool evenly among TILA subclass members.
Step 4: The administrator will divide the restraint of trade pool pro rata based on length of employment. Longer-tenured members will receive more.
Step 5: The administrator will divide the current employee pool pro rata based on length of employment. Shorter-tenured employees will receive more.
Step 6: The administrator will reduce all payments proportionally to account for attorneys’ fees and costs, settlement administration costs and service awards.
Step 7: If any class member's allocation is less than $100, the administrator will increase it to $100 by evenly lowering other class members' allocations.

No action needed to receive compensation

Class members do not need to file a claim to receive compensation. The settlement administrator will automatically mail payments to the address on file.

If a class member wishes to update their address or request a different payment method, they can contact the settlement administrator at claims@ilymgroup.com or 888-250-6810.

$725,000 settlement fund breakdown

The $725,000 settlement fund covers:

Settlement administration costs: $7,999.99
Attorneys' fees: Up to $241,667
Attorneys' expenses: Up to $206,000
Service awards to class representatives: $5,000 each (total $10,000)
Payments to eligible class members: Remainder after above deductions

Important dates

Opt-out deadline: Nov. 2, 2026
Settlement approval hearing: Dec. 11, 2026

When is the SpecialtyCare settlement payout date?

The settlement administrator will distribute payments after the court resolves any appeals and grants final approval to the settlement.

Why is there a class action settlement?

The lawsuit alleged SpecialtyCare’s training repayment agreement for surgical neurophysiologists violated Tennessee’s unlawful restraint of trade law and the federal Truth in Lending Act. The plaintiffs claimed the agreement unlawfully restricted employees and imposed improper penalties.

SpecialtyCare denied any wrongdoing but agreed to settle to avoid further litigation costs and risks.