The Alma therapy lawsuit currently in federal court is Sharika Sawer v. Arlozorov9, Inc., a personal injury case pending in the Southern District of New York against Alma’s parent company. It sits alongside a much broader record of consumer complaints and therapist grievances about how the digital mental health platform bills clients, handles medical records, and pays the providers who work through it.
What the Federal Lawsuit Alleges
Sharika Sawer filed suit against Arlozorov9, Inc., the corporate entity behind Alma, in September 2025 in the U.S. District Court for the Central District of California. The case was transferred to the Southern District of New York in January 2026, where it is docketed as Case No. 1:26-cv-00732 before District Judge Jesse M. Furman.1CourtListener. Sharika Sawer v. Arlozorov9, Inc.
The court classifies the matter as a personal injury diversity action, which distinguishes it from the billing and privacy disputes that dominate other complaints against Alma. An amended complaint was filed in March 2026, and Alma responded with a motion to dismiss the same month. Reply briefing wrapped up in April 2026, and as of May 2026 the motion remained under consideration.1CourtListener. Sharika Sawer v. Arlozorov9, Inc. The specific factual allegations are not fully detailed in available public records.
Client Billing Complaints Against Alma
Outside the federal case, the largest concentration of grievances against Alma involves how it charges clients. The Better Business Bureau lists 56 complaints against Alma over the previous three years as of June 2026, with 29 filed in the most recent twelve months. Alma is not BBB-accredited. Eleven of those complaints are formally categorized as billing issues, and many filed under other categories describe billing problems as well.2Better Business Bureau. Alma Complaints
The recurring pattern is a post-service price jump. Clients say they were quoted one copay before a session and charged a much higher amount after insurance adjudicated the claim. One complaint documented a $0 quoted copay followed by a $268 charge. Another described a $30 estimate followed by an additional $121.74 charge. Alma has generally responded that pre-appointment estimates are provisional and that final charges reflect what the insurer determines.2Better Business Bureau. Alma Complaints
Several clients have invoked the federal No Surprises Act, arguing Alma did not give adequate advance notice of possible cost increases. Others have flagged the company’s policy of keeping a credit card on file that cannot be removed, saying it lets Alma charge adjusted amounts without specific authorization for each transaction.3Better Business Bureau. Alma Complaints – Page 3
ClearHealthCosts documented one client’s eight-month dispute in which Alma billed her twice for single sessions, first at a $10 copay rate and again at the $127.52 full rate, producing $382.56 in improper duplicate charges. The same investigation described inconsistent charges for identical sessions and difficulty reaching a live representative to fix the errors.4ClearHealthCosts. Alma and the Therapy Client: 8 Long Months of Dispute
Medical Records and HIPAA Questions
A separate line of criticism concerns Alma’s handling of protected health information. In the ClearHealthCosts investigation, Alma refused to give a patient full copies of her own medical and billing records, saying the company is a “business associate” rather than a “covered entity” under HIPAA and therefore not obligated to fulfill the request. Alma representatives told the patient that what had already been shared was the “absolute maximum” the company was “permitted to release” and that Alma does not issue formal written HIPAA denial letters.4ClearHealthCosts. Alma and the Therapy Client: 8 Long Months of Dispute
Barbara Zabawa, a wellness lawyer and law professor, said Alma’s business associate status does not exempt it from HIPAA’s requirements, including the obligation to give patients access to their protected health information. She suggested that patients in this position can file complaints with the HHS Office for Civil Rights, or report data privacy concerns to the Federal Trade Commission under Section 5 of the FTC Act.4ClearHealthCosts. Alma and the Therapy Client: 8 Long Months of Dispute
Another patient reported that Alma targeted her for an “out-of-network payments pilot” based on her personal health information, including payment status, insurance eligibility history, and recent care activity. She said the use exceeded HIPAA’s minimum necessary standard for billing entities and that she had never signed a specific contract authorizing it, only general terms of service.4ClearHealthCosts. Alma and the Therapy Client: 8 Long Months of Dispute
Therapist Complaints and the Aetna Rate Cut
Providers pay Alma roughly $125 a month for access to the platform’s billing and credentialing tools.5Choosing Therapy. Alma for Therapists Review A central therapist complaint is that Alma collects more from insurers than it pays clinicians and that providers cannot see the gap. One counselor reported receiving $121.80 per session while Alma collected $142.80 from the insurer. Another received $79 for a session where Alma billed Cigna $125.6ClearHealthCosts. Therapists Have Misgivings on the Platforms Because the insurance contract runs between Alma and the payer, individual clinicians cannot negotiate their own rates or contest reimbursement decisions directly.
In May 2026, Alma notified providers that Aetna would cut reimbursement rates effective July 15, 2026. Under the new structure, extended sessions would be paid at the same rate as shorter ones, and doctoral-level providers would be paid at the same rate as master’s-level clinicians. Alma said publicly it disagreed with the changes and was collecting clinician feedback for Aetna. The American Psychological Association said the cuts force psychologists to decide whether they can afford to stay in-network, which affects patient access.7Behavioral Health Business. Aetna Cuts Rates With Alma-Contracted Therapists
Therapists have also flagged operational failures. One provider said Alma processed UnitedHealthcare claims incorrectly as out-of-network in 2023, leading to clients being overcharged hundreds of dollars and the loss of two clients, and that she could not reach a live person to fix the problem.6ClearHealthCosts. Therapists Have Misgivings on the Platforms Leaving the platform ends a clinician’s in-network status with those insurers immediately, and rebuilding independent contracts can take months with no guarantee of acceptance.
A 2025 Psychotherapy Action Network survey of 667 mental health professionals found that 81% of therapists using practice management companies believed those companies do not adequately protect patient information, 84% were never informed about fee-splitting arrangements before joining, and 85% said they would stop using a platform if they learned an insurance company held a significant ownership stake in it.8Psychotherapy Action Network. Practice Management Companies
What Alma’s Terms Say About Suing
Before considering legal action against Alma, clients should read the company’s terms of use, which contain a mandatory arbitration clause and a class-action waiver. Under the client terms updated December 1, 2025, disputes must be resolved through binding arbitration rather than in court, and clients waive the right to participate in class actions or class-wide arbitration. Clients have 30 days after accepting the terms to opt out of the arbitration provision. If a court invalidates the class-action waiver for a specific claim, that claim would be heard in state or federal courts in California while other disputes stay in arbitration.9Alma. Alma Client Terms of Use
Who Owns Alma Now
Alma has raised more than $220 million in venture capital, including a $130 million Series D round led by Thoma Bravo in August 2022. Investors include Cigna Ventures and Optum Ventures, the investment arms of two of the largest health insurers in the country, and Alma holds a position within the Evernorth (Cigna) behavioral health network.10PR Newswire. Alma Raises $130M in Series D Funding Led by Thoma Bravo The PsiAN survey found that 70% of therapists were unaware of who owns or invests in the platforms they use.8Psychotherapy Action Network. Practice Management Companies
On May 1, 2026, Spring Health completed its acquisition of Alma. Financial terms were not disclosed. Alma will continue operating as a distinct brand, and CEO Harry Ritter will remain at the helm, reporting within Spring Health.11Spring Health. Spring Health, Alma Complete Combination The transaction cleared required regulatory review, and publicly available information does not address whether the acquisition affects any pending disputes or legal claims against Alma.12Fierce Healthcare. Spring Health to Buy Alma in Move to Boost Position in Mental Health Market