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In this claims processing case, evidence is presented to support a critical analysis of claims processing problems. Currently claims are not processed in an efficient manner. Students need to critically analyze the current claims handling process and present a revised version in their solution. Data is provided regarding the number of claims, types of claims, claims processing error rates, catalog information, database sources, and database updates. The data is sufficient to give clues as to the sources and variations of claims. While multiple solution approaches will satisfy the case requirements, solutions should be similar in their general form and conclusions. The primary subject matter of this case concerns an audit of claims processing for an on-line retailer. Secondary issues examined include process analysis, database analysis, and statistical quality control. The case has a difficulty level of six, appropriate for first year graduate level students. The case is designed to be taught in two class hours and is expected to require 6 – 8 hours of outside preparation by students.