Artful Pleading Won’t Circumvent Sovereign Immunity, Fourth Circuit Says

In Cunningham v. Lester, —F.3d—, 2021 WL 821467 (4th Cir. Mar. 4, 2021), the Fourth Circuit reiterated that the doctrine of sovereign immunity is alive and well and very much applicable to putative TCPA claims, and that crafty plaintiffs cannot artfully plead around the doctrine’s reach.

The Affordable Care Act (ACA) contains a provision requiring the U.S. Department of Health and Human Services, Centers for Medicare & Medicaid Services (CMS) to “establish a system” so applicants “receive notice of eligibility for an applicable State health subsidy program.” 42 U.S.C. §§ 18083(a), (b)(2), (e). CMS contracted with private company GDIT to fulfill CMS’s requirement that it contact individuals to inform them of their eligibility for participation in the subsidized health insurance plans offered through ACA’s health insurance exchanges. Defendants were individuals working for CMS in connection with the CMS-GDIT contract. Defendants instructed GDIT to prerecord a message and deliver it to approximately 680,000 individuals who had not consented to receive the message.

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