BFA was appointed as Co-Lead Counsel for the putative class on December 5, 2024. This case arises from CVS’s misrepresentations that attributed the Company’s apparent financial success to legitimate factors, while concealing that CVS’s profitability was driven in substantial part by an unsustainable and risky practice: CVS’s abuse of AI algorithms and prior authorization to deny medically necessary care. During the relevant period, CVS touted favorable cost trends and assured investors that “everything is fully baked in” to its earnings guidance. In truth, however, CVS’s performance had been artificially inflated by the risky and unsustainable practice of using secret algorithms that issued widespread denials of costly prior authorization claims, and as automation programs were wound down, CVS’s utilization metrics skyrocketed.
BFA filed the amended complaint on March 4, 2025. On August 27, 2026, the Court denied in part defendants’ motion to dismiss. The case is now proceeding to discovery.
