Signify Health, the in-home health evaluation company now owned by CVS Health, has been named in lawsuits covering trade secret theft, a disputed merger earnout, Telephone Consumer Protection Act claims tied to its scheduling calls, and employment disputes brought by former workers. Some of those cases have settled, one was largely dismissed, another produced a defense win now on appeal, and at least one remains active in federal court.
CareCentrix Trade Secret Case Settled in 2022
In March 2021, CareCentrix Inc. sued Signify Health and former CareCentrix executive Marcus Lanznar in the U.S. District Court in Delaware, alleging corporate espionage and theft of trade secrets.1Healthcare IT News. CareCentrix Files Corporate Espionage Lawsuit Against Signify Health The complaint said Lanznar, a former general manager and vice president of product, acted as a “spy” for Signify during his final three months at CareCentrix, forwarding proprietary information to his personal email, joining Signify strategy calls, and attending a Signify offsite while still employed by CareCentrix.
CareCentrix also alleged Lanznar violated a nine-month non-compete and that Signify knowingly benefited from his conduct. It sought an injunction, damages, and fees. Signify said at the time it disputed the claims and would “vigorously defend the lawsuit.”1Healthcare IT News. CareCentrix Files Corporate Espionage Lawsuit Against Signify Health
The case settled in May 2022. CareCentrix dismissed all claims with prejudice, each side agreed to pay its own costs and fees, and the settlement terms were not publicly disclosed.2Law360. Home Care Co., Ex-Exec Settle Trade Secrets Row
Caravan Health Earnout Suit: Breach Claim Dismissed, Discovery Fight Continues
Signify Health acquired Caravan Health Inc. for $250 million in a deal that closed in December 2021. Former Caravan investors sued in the Delaware Court of Chancery, alleging Signify breached the merger agreement by integrating Caravan’s workforce well ahead of a contractually agreed 2023 timeline.3Bloomberg Law. Signify Health Hit With $50 Million Suit Over $250 Million Deal According to the investors, the premature integration diverted key Caravan employees from their Caravan roles and kept the company from hitting milestones that would have triggered up to $50 million in additional earnout payments.
Vice Chancellor Nathan A. Cook dismissed the breach of contract claim in December 2024, ruling the investors’ reading of the merger agreement was “not reasonably conceivable.”4Bloomberg Law. Claims Against Signify Health Over Caravan Merger Get Trimmed The dispute has not ended. As of October 2025, the shareholder representative moved for court approval of a forensic examination of Signify’s records, citing allegations that the company deleted Caravan employee records after closing.5Law360. Health Data Co. Accused of Post-Deal Doc Deletions
Phelps TCPA Case: Summary Judgment for Signify, Now on Appeal
Signify Health’s core business involves calling health plan members to schedule in-home evaluations, and that practice produced a Telephone Consumer Protection Act lawsuit. Jon Phelps sued Signify and Aetna in Maricopa County Superior Court, and the case was removed to the U.S. District Court for the District of Arizona.6PACER Monitor. Phelps v. Signify Health et al
On November 6, 2025, Judge John J. Tuchi granted summary judgment for Signify and Aetna. The court found Phelps had given what it called “transactional consent” when he supplied his phone number during Aetna health plan registration, and because Signify’s calls concerned scheduling healthcare appointments included in his plan, they fell within that consent as a matter of law. The court also held that whether Signify was motivated by profit or by improving health outcomes was “ultimately irrelevant” to the consent analysis, and found Signify acted as Aetna’s agent so the calls were legally treated as if Aetna had made them.7TCPA World. Consent Prevails: Aetna and Signify Health Off the TCPA Hook
Phelps filed a notice of appeal in early 2026. The case is not fully resolved.6PACER Monitor. Phelps v. Signify Health et al
Employment Lawsuits from Former Workers
In Walker v. Signify Health Inc., filed in the U.S. District Court for the Northern District of Texas, Brianna Walker alleged the company violated the Family and Medical Leave Act. The case went to mediation and settled. The parties filed a joint stipulation of dismissal with prejudice on September 25, 2025. Settlement terms were not disclosed.8PACER Monitor. Walker v. Signify Health Inc.
A separate case, Arrassi v. Signify Health, LLC, is pending in the U.S. District Court for the Eastern District of Pennsylvania. Mohammed Arrassi, representing himself, alleges FMLA violations, False Claims Act violations, and Pennsylvania common law claims. He says he was fired after reporting what he describes as unnecessary medical testing, patient deception, and fraudulent billing practices. Signify moved to compel arbitration, pointing to an agreement Arrassi signed when he began working as an independent contractor in February 2024. Arrassi disputes that the agreement is valid. In May 2026, Judge Henry denied the motion to compel arbitration without prejudice and ordered limited discovery on the arbitrability question before any renewed motion. The case remains active.9CaseMine. Arrassi v. Signify Health, LLC
Why Signify’s Call Practices Keep Drawing Scrutiny
The TCPA case sits on top of a business model built around volume outreach. Signify runs call centers that contact Medicare Advantage members to book in-home evaluations, and reporting by The Capitol Forum, drawing on internal documents and employee accounts, describes agents measured on conversion rates, appointments per hour, and productivity. Agents earn $2.50 per booking, or $5.00 per booking retroactively if they exceed 400 bookings in a month.10The Capitol Forum. Signify Health Company Documents Reveal Emphasis Placed on Booking Visits
Agents follow scripted rebuttals and are expected to deliver at least two before ending a call, according to the same reporting. Unless a member says the phrase “opted out,” the member’s information is returned to the automated dialer queue. Employees have reported being coached or disciplined for removing members who simply asked the calls to stop, and some agents reportedly suggested members might lose coverage or benefits if they declined a visit. After Signify took over call center operations previously run by Humana, employees described the atmosphere as “aggressive, sales-like.”10The Capitol Forum. Signify Health Company Documents Reveal Emphasis Placed on Booking Visits
CVS Health closed its roughly $8 billion acquisition of Signify Health on March 29, 2023, and Signify continues to operate as a unit within CVS.11Signify Health. CVS Health Completes Acquisition of Signify Health The litigation above spans conduct both before and after that closing.