Sovereign Health has filed a motion with the U.S. District Court of the Central California District to unseal federal search warrants that have remained sealed since agents appeared at several Sovereign Health locations in June, searching the facilities and removing documents for an investigation. The company is alleging that the sealed affidavit authorizing the raid contained false and misleading information, and concealed information regarding an ongoing civil lawsuit between Sovereign and insurance giant Health Net, Inc.
In 2016, Health Net began denying behavioral health providers' claims, alleging fraud. Sovereign sued Health Net for $55 million in unpaid claims. Health Net retaliated earlier this year with a counter suit against Sovereign and other healthcare providers.