March 9, 2026
A New York federal judge pared claims Monday against JPMorgan Chase & Co. in a suit from workers who alleged they paid too much for prescription drugs, but opened discovery on allegations that the bank’s contract with its pharmacy benefit manager caused transactions prohibited by federal benefits law.
U.S. District Judge Jennifer L. Rochon entered an opinion and order granting in part and denying in part a motion to dismiss the Employee Retirement Income Security Act suit, which JPMorgan workers filed in March 2025. The proposed class alleged JPMorgan breached its fiduciary duties of loyalty and caused prohibited transactions by failing to rein in the excessive prescription drug costs in its employee health plan that were imposed by its PBM, CVS Caremark. Caremark isn’t named as a defendant in the case.
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Kai Richter, an attorney for the proposed class, said Monday, “We are pleased with the court’s common-sense ruling that paying more for prescription drugs constitutes an injury-in-fact and look forward to litigating plaintiffs’ prohibited transaction claims that the court properly held may go forward.”
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The proposed class is represented by Michael Eisenkraft, Michelle Yau, Daniel Sutter and Kai Richter of Cohen Milstein Sellers & Toll PLLC and by Tamar Katz and Michael Lieberman of Fairmark Partners LLP.