Pagaya Technologies Securities Investigation – PGY

Kehoe Law Firm, P.C. is investigating securities claims on behalf of investors of Pagaya Technologies Ltd. (“Pagaya”) (NASDAQ:PGY) for potential violations of federal securities laws.

Investing.com reported that Pagaya stock “. . . shares fell 6% following a short report from Iceberg Research that criticized the fintech company’s financial practices and management history. Iceberg Research publicly announced its short position, claiming that Pagaya has used third-party funds to hide significant losses.”

The Iceberg Research report, according to Investing.com “. . . detailed how Pagaya underwrites consumer loans that were originally rejected by its partners due to high risk. It then sells the majority of these loans through asset-backed securities (ABS) to institutional investors. Iceberg Research highlighted a pattern of questionable management decisions and potential conflicts of interest, pointing to the involvement of Pagaya’s CTO Avital Pardo in a previously collapsed company and President Sanjiv Das’s history of overlooking misconduct.”

Shares of Pagaya stock were down more than 11% during intraday trading on February 11, 2025.

Pagaya Technologies Investors May Have Legal Claims 

Investors of Pagaya Technologies stock are encouraged to send us a message or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected], to learn more about the Pagaya Technologies securities class action investigation and receive a free, no-obligation evaluation of potential legal claims.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors.

Our firm litigates securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

 

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KLF Files Class Action Against Pharmacy Benefit Managers and GoodRx on Behalf of Independent Pharmacies

On February 7, 2025, Kehoe Law Firm, P.C. filed a class action lawsuit in U.S. District Court for the Central District of California (Case No. 2:25-cv-01099) on behalf of C&M Pharmacy Inc., d/b/a Parvin’s Pharmacy and Katz Pharmacy, against GoodRx and several major pharmacy benefit managers (PBMs), including CVS Caremark, Express Scripts, MedImpact, and Navitus.

The lawsuit alleges that these entities conspired to suppress reimbursement rates and impose higher fees on independent pharmacies, threatening their financial viability.

The complaint claims that GoodRx’s “Integrated Savings Program” (“ISP”) collaborates with PBMs to artificially lower generic drug reimbursement rates and increase transaction fees, enriching GoodRx and PBMs at the expense of independent pharmacies. The ISP allegedly uses GoodRx’s pricing algorithm and real-time PBM data so the PBMs can improperly coordinate and determine generic drug prices. These actions, according to the lawsuit, violate antitrust laws by fixing prices and creating unfair competition.

“We are pleased to stand with independent pharmacies in their fight against what we believe are the predatory practices of PBMs and GoodRx,” said John Kehoe, Partner at Kehoe Law Firm. “Combating collusion in the healthcare industry is critical to ensuring fair competition and protecting the backbone of many communities—their local pharmacies.”

The Federal Trade Commission (“FTC”) has also been investigating the role of PBMs in the pharmaceutical supply chain. An interim report released in July 2024 raised concerns about PBMs’ vertical integration and market concentration, which have granted PBMs significant control over drug pricing and accessibility. The FTC found that the six largest PBMs manage nearly 95% of all U.S. prescriptions, profiting at the expense of patients and independent pharmacies.

In addition, the House Committee on Oversight and Accountability released a report in July 2024 criticizing the pricing tactics of the three largest PBMs—CVS Caremark, Express Scripts, and OptumRx. The report concluded that these PBMs have monopolized the pharmaceutical market, raising prescription drug prices, undermining community pharmacies, and harming patients nationwide.

Questions About the Antitrust Class Action Lawsuit?

To learn more about the class action lawsuit or discuss potential legal claims, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected], for a free, no-obligation legal evaluation.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff-side class action law firm specializing in securities fraud, breaches of fiduciary duties, and corporate misconduct. The firm’s partners have collectively served as Lead Counsel or Co-Lead Counsel in high-profile cases, recovering over $10 billion for institutional and individual investors.

 

GoodRx, PBMs Face New Antitrust Price-Fixing Class Action

GoodRx and PBMs Face Legal and Regulatory Scrutiny 

Independent pharmacies have recently filed lawsuits in several different federal courts, alleging that GoodRx, in collaboration with several pharmacy benefit managers (“PBMs”),including CVS Caremark, Express Scripts, MedImpact, and Navitus, engaged in practices to suppress reimbursement rates and increase fees for independent pharmacies.

On February 7, 2025, Kehoe Law Firm, P.C. filed such a class action lawsuit on behalf of C&M Pharmacy Inc., d/b/a Parvin’s Pharmacy & Katz Pharmacy, in United States District Court, Central District of California.

Please click C&M Pharmacy, d/b/a Parvin’s Pharmacy & Katz Pharmacy v. GoodRx, Caremark, et al. to view the antitrust class action complaint.

The lawsuits claim that through GoodRx’s “Integrated Savings Program” (“ISP”), these entities conspired to artificially lower generic drug reimbursement rates and impose higher transaction fees, thereby maximizing their profits at the expense of smaller pharmacies.  The ISP allegedly utilizes GoodRx’s pricing algorithm and real-time data from PBMs to determine the prices of generic drug transactions. This system is said to enrich GoodRx and the PBMs while financially harming independent pharmacies.

The lawsuits allege that such practices violate antitrust laws by fixing prices and creating unfair competition, ultimately threatening the viability of independent pharmacies.  As a result, independent pharmacies are reimbursed at the lowest rate as determined by the GoodRx algorithm, which often results in lower payments than the rates originally negotiated with the PBMs.

In a related context, the Federal Trade Commission (“FTC”) has been investigating the role of PBMs in the pharmaceutical supply chain. An interim report published in July 2024 highlighted concerns that PBMs, through vertical integration and market concentration, have significant control over prescription drug accessibility and affordability.

The FTC report found that the six largest PBMs manage nearly 95% of all U.S. prescriptions, enabling them to profit at the expense of patients and independent pharmacists. The FTC’s inquiry aims to shed light on PBM practices, including charging fees and clawbacks to unaffiliated pharmacies, steering patients toward PBM-owned pharmacies, and employing opaque reimbursement methods that disadvantage independent pharmacies.

PBMs and Their Alleged Manipulation of Drug Pricing

PBMs allegedly manipulate prescription drug pricing in several ways:

  • Dictating Reimbursement Rates: PBMs force independent pharmacies to accept unreasonably low reimbursement rates for dispensing prescriptions, often lower than the pharmacy’s acquisition costs.
  • Charging Retroactive Fees: PBMs impose Direct and Indirect Remuneration (“DIR”) fees and other retroactive fees on pharmacies, which can significantly reduce the pharmacies’ margins. These fees are often tied to performance metrics and can be substantial.
  • Clawbacks: PBMs sometimes instruct pharmacies to collect higher copays from patients than the actual cost of the drug and then claw back the difference, keeping the excess amount.
  • Specialty Drug Pricing: PBMs mark up the prices of specialty generic drugs by significant amounts and reimburse their affiliated pharmacies at higher rates than unaffiliated pharmacies.
  • Vertical Integration: Many PBMs are part of vertically integrated conglomerates that include their own mail-order, specialty, and retail pharmacies. This integration allows them to steer patients to their own pharmacies and manipulate pricing to benefit their affiliated entities.
  • Opaque Contracts: PBMs offer complex, opaque, and ever-changing contracts to independent pharmacies, often on a take-it-or-leave-it basis, preventing pharmacies from negotiating better terms.
  • Exploiting Market Power: PBMs control access to a large share of the market for prescription drug claims, giving them significant leverage over independent pharmacies. They use this power to dictate terms and underpay those pharmacies.
  • Data Sharing and Algorithmic Pricing: In the case of the GoodRx Integrated Savings Program, PBMs share real-time pricing data with GoodRx, allowing them to algorithmically select the lowest reimbursement rate from competitors, further suppressing payments to pharmacies.

In July 2024, the House Committee on Oversight and Accountability released a report scrutinizing the practices of the three largest PBMsCVS Caremark, Express Scripts, and OptumRx.

The report concluded that these PBMs have monopolized the pharmaceutical marketplace by deploying deliberate, anticompetitive pricing tactics that are raising prescription drug prices, undermining community pharmacies, and harming patients across the United States.

The National Community Pharmacists Association (“NCPA”), representing independent pharmacists, has been vocal about the detrimental effects of PBM practices. In a statement submitted to the House Oversight Committee, the NCPA highlighted how PBMs prioritize their interests, often at the expense of patients, employers, taxpayers, and community pharmacies. The association emphasized the urgent need for Congress to enact robust PBM reform legislation to address these issues.

These developments underscore the growing concern among lawmakers and industry stakeholders regarding PBM practices and their impact on independent pharmacies and patient care.

Questions About the Antitrust Class Action Lawsuit Against GoodRx, Caremark, Express Scripts, MedImpact Healthcare and Navitus Health Solutions?

To learn more about the lawsuit or discuss potential legal claims, please send us a message or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected], for a free, no-obligation legal evaluation.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff-side class action law firm specializing in securities fraud, breaches of fiduciary duties, and corporate misconduct. Collectively, the firm’s partners have served as Lead Counsel or Co-Lead Counsel in high-profile cases that have recovered more than $10 billion for both institutional and individual investors.

Kehoe Law Firm’s legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

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Contact Us

ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

PHONE

Tel: 215-792-6676

EMAIL

[email protected]

Computer Employees: Are You Exempt from Minimum Wage and Overtime Pay Requirements?

Computer employees should be aware that the Fair Labor Standards Act (“FLSA”) requires that most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek.

The FLSA, however, provides an exemption from both minimum wage and overtime pay for computer systems analysts, computer programmers, software engineers, and other similarly skilled workers in the computer field who meet certain tests regarding their job duties and who are paid at least the standard salary level on a salary basis, or paid on an hourly basis at a rate not less than $27.63 an hour.

It is important to note that job titles do not determine exemption status. For the employer to claim this exemption, an employee’s specific job duties and compensation must meet all the requirements of the Department of Labor’s regulations.

Requirements to Qualify for the Computer Employee Exemption

To qualify for the computer employee exemption, the employer must ensure all the following requirements are met:

  • The employee must be compensated either on a salary or fee basis at a rate not less than the standard salary level required by 29 CFR 541.600 or, if compensated on an hourly basis, at a rate not less than $27.63 an hour;
  • The employee must be employed as a computer systems analyst, computer programmer, software engineer or other similarly skilled worker in the computer field performing the following primary duties:*
      • The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional specifications;
      • The design, development, documentation, analysis, creation, testing or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications;
      • The design, documentation, testing, creation or modification of computer programs related to machine operating systems; or
      • A combination of these duties, the performance of which requires the same level of skill.

Computer Employee Exemption: What’s Not Included

The computer employee exemption does not include employees engaged in the manufacture or repair of computer hardware and related equipment.

Employees whose work is highly dependent upon, or facilitated by, the use of computers and computer software programs (e.g., engineers, drafters and others skilled in computer-aided design software), but who are not primarily engaged in computer systems analysis and programming or other similarly skilled computer-related occupations identified in the primary duties test described above, are also not exempt under the computer employee exemption.

*Primary duty means the principal, main, major or most important duty that the employee performs. Determination of an employee’s primary duty must be based on all the facts in a particular case, with the major emphasis on the whole character of the employee’s job.

Source: U.S. Department of Labor, Wage and Hour Division, Fact Sheet 17E.

Have You Been Wrongfully Denied Overtime as a Computer Employee?

    If you believe you have been wrongfully denied overtime by your employer, Kehoe Law Firm is here to help. Our experienced attorneys are dedicated to protecting workers’ rights. For a free, no-obligation evaluation of potential legal claims, send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected]

    No-Cost Legal Assistance

    Our class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

    SEND US A MESSAGE

    Contact Us

    ADDRESS

    Kehoe Law Firm, P.C.
    2001 Market Street
    Suite 2500
    Philadelphia, PA 19103

    PHONE

    Tel: 215-792-6676

    EMAIL

    [email protected]

    Nurses, Overtime Pay, and the FLSA

    The Fair Labor Standards Act (FLSA) requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 in a workweek.

    Section 13(a)(1) of the FLSA, however, provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executiveadministrativeprofessional and outside sales employees.

    Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees.

    To qualify for exemption, employees must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684 per week.

    Nurses and the Learned Professional Exemption

    To qualify for the learned professional employee exemption, all of the following tests must be met:

    • The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $684 per week;
    • The employee’s primary duty must be the performance of work requiring advanced knowledge, defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment;
    • The advanced knowledge must be in a field of science or learning; and
    • The advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual instruction.

    Registered nurses who are paid on an hourly basis should receive overtime pay. However, registered nurses who are registered by the appropriate State examining board generally meet the duties requirements for the learned professional exemption and, if paid on a salary basis of at least $684 per week, may be classified as exempt.

    Licensed practical nurses and other similar health care employees, however, generally do not qualify as exempt learned professionals, regardless of work experience and training, because possession of a specialized advanced academic degree is not a standard prerequisite for entry into such occupations, and are entitled to overtime pay.

    Source: U.S. Department of Labor, Wage and Hour Division, Fact Sheet 17N.

    Do You Believe Your Employer Has Wrongfully Denied You Overtime Pay?

      If so, Kehoe Law Firm is here to help. Our experienced attorneys are dedicated to protecting workers’ rights. For a free, no-obligation evaluation of potential legal claims, send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected]

      No-Cost Legal Assistance

      Our class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

      SEND US A MESSAGE

      Contact Us

      ADDRESS

      Kehoe Law Firm, P.C.
      2001 Market Street
      Suite 2500
      Philadelphia, PA 19103

      PHONE

      Tel: 215-792-6676

      EMAIL

      [email protected]