Mental Health Firm Sued Over Alleged Ghost Network of Providers

A group of patients sued a Massachusetts-based mental health services firm over allegations it knowingly published inaccurate and misleading provider directories in an attempt to attract potential customers.

Plaintiffs Jane Doe, Hannah Landerer, and Steven Marks filed a proposed class action complaint Monday in the US District Court for the Southern District of New York against Carelon Behavioral Health Inc.

The former patients alleged the company misled “people in need of qualified mental health providers by publishing grossly inaccurate directories of doctors and therapists,” leading to delayed treatment, increased out-of-pocket costs from patients’ use of out-of-network doctors, and the exacerbation ...