Class Action Filed Against Blue Shield of California and Magellan Health
California, November XX, 2025 – Pollock Cohen LLP and Walden Macht Haran & Williams LLP, have filed a federal class action lawsuit against Blue Shield of California and Magellan Health, Magellan Healthcare, Inc.
The suit focuses on the harm caused by the insurance company’s “ghost networks.” A ghost network refers to the directory of providers – doctors and therapists – who supposedly accept the insurance but who, in reality, don’t exist, or don’t accept the defendants’ health insurance, or don’t accept new patients. More than 75% of the providers listed are ghosts. As a result of these deceptive business practices, patients are significantly harmed financially and by the delay or inability to get care.
In the complaint, multiple plaintiffs across California detail their personal or their child’s struggle to find accessible care. They share their experiences spending countless hours calling dozens of doctors listed in the directories provided by Blue Shield and Magellan. Contrary to the defendants’ claims that these were in-network providers, an astounding number of those listed either did not exist, didn’t accept the insurance, or wouldn’t accept new patients at all or for months. As a result – and often after months and sometimes years of searching – the plaintiffs either paid thousands of dollars for out-of-network care or abandoned their search for care entirely.
In addition to deceiving members with ghost networks, the defendants further misled, defrauded and harmed their customers by denying covered services; failed to apply members’ out-of-pocket expenditures to deductibles properly; or refused to reimburse members an appropriate or consistent amount when they use out-of-network providers.
“What we uncovered shows a fundamentally broken system,” said Steve Cohen of Pollock Cohen, one of the lead attorneys representing the plaintiffs. “Families rely on these directories and then find them to be wildly inaccurate. In many cases, doctors aren’t taking new patients, aren’t in-network, or aren’t even practicing at all. When insurers publish networks they know are inaccurate, it’s not just an inconvenience to these families, it’s a denial of care.”
“These ghost networks force people to spend weeks chasing appointments that don’t exist and delaying treatment for serious medical conditions,” said Jacob Gardener, a partner at Walden Macht Haran & Williams and co-counsel for the plaintiffs. “For families, especially those with children in crisis, the emotional toll is devastating and entirely preventable.”
Click here for the complaint.
This is the fifth ghost network lawsuit filed by Pollock Cohen and Walden Macht. In November, they filed a class action in New York Federal Court against Healthfirst, which administers healthcare to New Yorkers. In July 2025, the firms filed a class action in Federal Court in Connecticut against Anthem Health Plans, Carelon and parent company, Elevance. Earlier in 2025, they also filed a class action lawsuit against Carelon on behalf of more than 1.2 million New York state and municipal employees. And in 2024, the firms filed a class action lawsuit against Anthem Blue Cross and Blue Shield on behalf of nearly 150,000 federal employees in New York State. The previous class actions can be found here.
About Pollock Cohen LLP
Pollock Cohen LLP is an impact-driven litigation firm that delivers unusually effective plaintiff-side legal representation. We are known for our ability to solve client problems—with strategy, creativity, and thought—both inside the courtroom and outside the four corners of a legalistic approach. We thrive on representing plaintiffs in cases that are impactful and meaningful, and where we can make a difference. For more information, visit http://www.pollockcohen.com.
About Walden Macht Haran & Williams LLP
Walden Macht Haran & Williams LLP is a premier litigation boutique that handles high-stakes civil and criminal cases. Headquartered in New York, they are known for their work on high-profile complex commercial disputes, appeals, white-collar defense and investigations, monitorships, and corporate compliance matters. Walden Macht Haran & Williams strives to do good. For more information, visit https://wmhwlaw.com.
