Law360: Blue Shield Still Facing Therapy 'Ghost Network' Suit

September 23, 2026

In “Law360 Blue Shield Still Facing Therapy 'Ghost Network' Suit” (Law360, September 23, 2026), Law360 discusses the motion to dismiss ruling in Roiz et al. v. Blue Shield of California Life & Health Insurance Company et al., a class action lawsuit filed in California federal court.

On Wednesday, September 23, U.S. District Judge William H. Orrick denied Blue Shield’s motion to dismiss. The lawsuit filed against Blue Shield of California and Magellan Health alleges fraudulent and negligent misrepresentations for failing to maintain an accurate provider directory, which has resulted in what are known as "ghost networks." In his ruling, Judge Orrick acknowledged that a contract exists between the subscribers and Blue Shield, and he states that plaintiffs cited specific contractual provisions and "adequately alleged violation of them." 

The plaintiffs are represented in this matter by Pollock Cohen LLP partner Steve Cohen. 

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BLUE SHIELD STILL FACING THERAPY 'GHOST NETWORK' SUIT | LAW360