Kristal Dargon v. Xtend Healthcare, LLC, et al.

CourtDistrict Court, M.D. Tennessee
DecidedMarch 31, 2026
Docket3:25-cv-00013
StatusUnknown

This text of Kristal Dargon v. Xtend Healthcare, LLC, et al. (Kristal Dargon v. Xtend Healthcare, LLC, et al.) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kristal Dargon v. Xtend Healthcare, LLC, et al., (M.D. Tenn. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION

KRISTAL DARGON, ) ) Plaintiff, ) ) NO. 3:25-cv-00013 v. ) ) JUDGE RICHARDSON XTEND HEALTHCARE, LLC, et al., ) ) Defendants. ) )

MEMORANDUM OPINION Pending before the Court in this putative class action are two motions. The first motion is a motion to dismiss (Doc. No. 27, “Xtend Motion”) filed by Defendant Xtend Healthcare, LLC (hereinafter “Defendant Xtend” or “Xtend”). Defendant Xtend has filed a memorandum in support (Doc. No. 28, “Xtend Motion Memorandum”) of the Xtend Motion. Plaintiff, Kristal Dargon, has filed a response (Doc. No. 31, “Xtend Motion Response”) in opposition to the Xtend Motion. Defendant Xtend has filed a reply (Doc. No. 33, “Xtend Motion Reply”) in further support of the Xtend Motion. The second motion is a motion to dismiss (Doc. No. 34, “Navient Motion,” and collectively with the Xtend Motion, “Motions”) filed by Defendant Navient Corporation (hereinafter “Defendant Navient” or “Navient,” and collectively with Defendant Xtend, “Defendants”). Defendant Navient has filed a memorandum in support (Doc. No. 35, “Navient Motion Memorandum”) of the Navient Motion. In the Navient Motion, Defendant Navient indicates that it is incorporating, as support for the Navient Motion, the arguments made in the Xtend Motion Memorandum and also notes that it makes some additional arguments in the Navient Motion Memorandum. (Doc. No. 34 at 1).1 Plaintiff has filed a response (Doc. No. 42, “Navient Motion Response”) in opposition to the Navient Motion.2 Defendant Navient did not file a reply. Via the Motions, Defendants respectively seek dismissal of the claims Plaintiff set forth against them in her “Amended Class Action Complaint” (Doc. No. 21, “Amended Complaint”)

pursuant to Rule 12(b)(6). For the reasons described herein, the Motions (Doc. Nos. 27, 34) will be GRANTED. ALLEGED FACTS3 1. Defendants And The Call Center Xtend “is a Tennessee corporation with a principal place of business at its headquarters located at 90 Volunteer Drive, Suite 150, Hendersonville, Tennessee (“Headquarters”).” (Doc. No. 21 at ¶ 19). “Xtend was, until approximately August 13, 2024, and at all times relevant to the acts alleged in this Complaint, a wholly-owned and -controlled subsidiary of Defendant Navient [].” (Id. at ¶ 20). Navient is “a Delaware corporation . . . that specialized in, inter alia, contact center solutions for federal, state and local government agencies.” (Id. at ¶ 21).

1 The Court accepts that Defendant Navient incorporated the arguments made in the Xtend Motion Memorandum in support of the Navient Motion so that the arguments in the Xtend Motion Memorandum will be applied by the Court to the Navient Motion. In light of this, below the Court will at times refer to Defendants collectively making an argument in the Xtend Motion Memorandum.

2 Plaintiff has also filed a notice of supplemental authority (Doc. No. 61), therein informing the Court of the decision of the United States Bankruptcy Court for the Southern District of Texas in Weatherwax v. Sunnova., No. 25-90160, 2026 WL 598476 (Bankr. S.D. Tex. Mar. 3, 2026). The Court discusses this decision below.

3 The facts herein are taken from the Amended Complaint. For purposes of the instant Motion, the facts in the Amended Complaint are accepted as true, except to the extent that they are qualified herein (as, for example, by “Plaintiff alleges”) to denote that they are not being taken as true but instead are set forth merely to make clear what a party claims to be true. Throughout this opinion, the Court forgoes any such qualifiers for any fact that it is accepting as true, stating those facts without qualification even though it is aware that any such (alleged) fact ultimately might not prove to be true. In December 2020 “Defendants responded to [the State of] New Jersey’s request for a proposal seeking a vendor to operate its COVID-19 vaccination call center, as part of that state’s efforts to fight the COVID-19 pandemic.” (Id. at ¶ 22). “Defendants [then served as] vendors under contract with the State of New Jersey to operate a virtual COVID-19 Vaccination call center (the

“Call Center”) beginning in spring 2020,” (Doc. No. 21 at ¶ 1), and “[t]o operate the Call Center, Defendants employed remote employees,” who were tasked with speaking to “New Jersey residents regarding COVID vaccinations.” (Id. at ¶ 2).4 Defendants proposed “to provide 1,300 agents to perform Call Center work,” (id. at ¶ 24) and ultimately employed “hundreds of Call Center employees.” (Id. at ¶ 5). Defendants “controlled and managed the Call Center from the Headquarters.” (Id. at ¶ 28). Defendants “managed all the Call Center workers on a daily basis,” (id. at ¶ 3), and Defendants’ “supervisors and managers oversaw the operations of the Call Center,”5 “direct[ed] employee management, [and] provided services such as project management, quality control, project oversight, IT support, help desk support and performance analysis.” (Id. at ¶ 31).

The Call Center was operated “on a virtual platform using Navient’s call center technology.” (Id. at ¶ 25). Although virtual, the Call Center, had “all the capabilities of a physical call center.” (Id. at ¶ 28). The primary goal of employees at the Call Center “was to help New

4 By use of the term “remote employees,” the Court discerns that Plaintiff in the Amended Complaint and in her briefing on Motions as well as Defendants in their briefing on the Motions, mean employees who work virtually (i.e., telecommute), and are not required to physically report to a specific location or site for work and do not otherwise travel for work.

5 Although it is unclear from the Amended Complaint as to whether these particular supervisors and managers worked remotely, at least some portion of supervisors and managers, individuals that the Amended Complaint refers to as “lower-level immediate supervisors and managers” worked remotely. (Doc. No. 21 at ¶ 27). Jersey residents schedule [COVID] vaccination appointments, which agents did, supported by their supervisors.” (Id. at ¶ 29). 2. Plaintiff And Other Employees At The Call Center Plaintiff is a “resident of the state of New Jersey” (id. at ¶ 9) who “was hired by Defendants

and worked as a Call Center Supervisor/Operations Manager [from April 5, 2021] until her termination on or about February 24, 2022.” (Id. at ¶¶ 4, 10). Plaintiff, as well as other similarly situated (putative) class members, “worked remotely . . . for the virtual Call Center.” (Id. at ¶ 28). “While working for the Call Center, Plaintiff was directly employed by Xtend,” (id. at ¶ 11), and “received assignments from and reported to the Call Center’s senior management who worked out of” the Headquarters. (Id. at ¶ 12). Shortly before Plaintiff’s termination, which occurred around February 24, 2022, Plaintiff “was informed during a staff meeting of Call Center workers that the Call Center work would continue another year,” (id. at ¶ 13), but was then, without advanced written notice, “notified verbally by a manager that she would be terminated effective immediately.” (Id. at ¶¶ 14-15). Defendants also told other employees for the Call Center that their

work “would continue for another year.” (Id. at ¶ 36). Nevertheless, “hundreds of Call Center employees,” (in addition to Plaintiff), were terminated beginning on or about February 24, 2022. (Id. at ¶ 38). PLAINTIFF’S CLAIMS AND DEFENDANTS’ MOTIONS Based on the forgoing Plaintiff brings two claims on behalf of herself and two putative classes.6

6 In the Amended Complaint, Plaintiff includes allegations concerning these two putative classes. (Doc. No. 21 at ¶¶ 59-82). For the purposes of the instant motion, these allegations are not relevant, but the Court notes them here for context.

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Kristal Dargon v. Xtend Healthcare, LLC, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/kristal-dargon-v-xtend-healthcare-llc-et-al-tnmd-2026.