Kehoe Law Firm, P.C. represents lead plaintiff Southeastern Pennsylvania Transportation Authority (“SEPTA”) in a securities class action against CVS Health Corporation and certain of its officers pending in the U.S. District Court for the Southern District of New York.
On August 27, 2026, U.S. District Judge Margaret M. Garnett partially granted and partially denied CVS’s motion to dismiss the amended consolidated complaint, allowing certain investor claims concerning alleged omissions about CVS’s use of artificial intelligence in Medicare Advantage prior-authorization reviews to proceed.
“This is a good result for SEPTA and the investor class. The Court’s decision allows significant claims concerning CVS’s alleged omissions about its use of AI tools and their financial impact to move forward,” said John A. Kehoe of Kehoe Law Firm, P.C. “We look forward to continuing to prosecute the case on behalf of SEPTA and the class.”
What Did the Court Decide?
The court allowed certain investor claims concerning CVS’s alleged omissions about its use of AI tools and their financial impact to proceed. At the motion-to-dismiss stage, the court concluded that plaintiffs adequately alleged actionable statements concerning CVS’s financial forecasts and statements identifying the primary drivers of CVS’s financial success.
What Do the Investors Allege?
The amended complaint alleges that CVS used AI tools in connection with Medicare Advantage prior-authorization reviews and that those practices generated substantial cost savings. Plaintiffs allege that CVS misled investors by identifying other factors as primary drivers of its financial performance while failing to disclose material information concerning the use and financial impact of those tools.
Case Information
Louisiana Sheriffs’ Pension and Relief Fund et al. v. CVS Health Corp. et al., Case No. 1:24-cv-05303, U.S. District Court for the Southern District of New York.
The lead plaintiffs are Southeastern Pennsylvania Transportation Authority, the Louisiana Sheriffs’ Pension & Relief Fund, and the City of Miami Fire Fighters’ and Police Officers’ Retirement Trust.
Investors with questions or concerns about the class action can send us a message or contact:
John Kehoe, Esq.
(215) 792-6676, Ext. 801
[email protected]
[email protected]
About Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm representing investors and consumers in matters involving securities fraud, corporate misconduct, mergers and acquisitions, antitrust violations, whistleblower claims, data breaches, consumer fraud, employment law violations, and retirement-plan mismanagement. Its attorneys have served as lead or co-lead counsel in major securities cases, recovering more than $10 billion for institutional and individual investors.
Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for attorneys’ fees or litigation expenses. Any request for attorneys’ fees and expenses will be subject to court approval.
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