By As Law Online 
Thousands of patients turn to telehealth platforms every month for GLP-1 weight-loss medications, mental health support, and other prescriptions. Many appreciate the convenience. Yet a growing number report unexpected recurring charges, difficulty canceling, and sudden uncertainty about their care.
In April 2026 the Department of Justice escalated its long-running case against Zealthy and founder Kyle Robertson by asking a federal court for an immediate asset freeze and the appointment of a receiver. The motion forms part of a broader lawsuit that began in 2024 and alleges deceptive billing practices and improper prescribing. This article explains what the government claims, where the case stands, what consumer protections apply under laws such as the Restore Online Shoppers’ Confidence Act (ROSCA), and the practical steps patients can take right now to protect their finances and continuity of care.
Background on Zealthy and Kyle Robertson
Zealthy launched in 2022–2023 as a subscription-based telehealth service. It offers programs for compounded GLP-1 medications (semaglutide and tirzepatide), mental health care, skincare, birth control, and hormone therapies. Patients typically pay a monthly membership fee plus medication costs.
Kyle Robertson, Zealthy’s founder and CEO, previously co-founded Cerebral, a mental-health telehealth company. He left Cerebral in 2022. The Department of Justice and Federal Trade Commission later sued Cerebral and Robertson over alleged data practices, cancellation barriers, and ROSCA violations. Cerebral settled in 2024, agreeing to pay roughly $5 million in consumer redress and implement reforms. The government continued its claims against Robertson and the Zealthy entities.
Prosecutors describe a pattern. In court filings they state that at two consecutive telehealth companies Robertson “has engaged in wide-ranging lawbreaking that has harmed tens of thousands of telehealth patients.”
The Core Allegations in the Zealthy Lawsuit
The case, United States v. Cerebral, Inc. et al. (Southern District of Florida, Case No. 1:24-cv-21376), includes Zealthy, related entities such as Gronk Inc. and Bruno Health P.A., and Robertson. The third amended complaint filed in April 2026 expanded the claims.
Deceptive Billing and ROSCA Violations
The government alleges Zealthy violated the Restore Online Shoppers’ Confidence Act (ROSCA) and Section 5 of the FTC Act. Key claims include:
- Failing to clearly disclose material subscription terms before collecting billing information.
- Charging consumers without obtaining express informed consent.
- Creating obstacles to cancellation, including a multi-step process that allegedly added friction and discouraged people from leaving.
- Misleading marketing language such as “Pay $0 today” and “Cancel anytime” while immediately initiating charges.
Consumer complaints filed with the Better Business Bureau and review sites echo these themes: unauthorized membership renewals, charges appearing under different company names, and difficulty reaching support after cancellation attempts.
Unauthorized Prescribing Practices
Later discovery materials led to additional allegations. Prosecutors claim non-clinicians, including foreign call-center contractors, routinely ordered prescriptions under the names and National Provider Identifier (NPI) numbers of physicians who had not evaluated the patients. In some instances the doctors were no longer employed by the company. One former medical director’s credentials were allegedly used for thousands of prescriptions without his knowledge.
The government describes these practices as “systemic improper and dangerous telemedical practices” that endanger patient safety.
Other Claims
Filings also reference review manipulation, formation of new corporate entities after payment processors and credentialing bodies (such as LegitScript) dropped the company, and alleged misuse of patient data for advertising.
These remain allegations. Zealthy and Robertson deny wrongdoing and are defending the case. No court has issued a final judgment on the merits.
The April 2026 Motion for Asset Freeze and Receivership
On or about April 10–14, 2026, the DOJ filed a motion seeking a preliminary injunction that would freeze Zealthy’s assets and place the company under a court-appointed receiver. Prosecutors proposed Mark Roberts of Alvarez & Marsal for the role.
The government argued the freeze is necessary “to ensure a bulwark against efforts to conceal assets and frustrate recovery” and to preserve funds for possible consumer redress. Filings note that the penalties and refund amounts sought “may bankrupt Zealthy,” making asset preservation essential.
As of late 2026 the motion remained pending. A hearing was postponed while the court ruled on a related motion to dismiss (denied in late October 2026). The broader case continues, with trial dates reported in various sources for late 2026 or 2027. No receivership order or formal consumer claims process has been announced.
What an Asset Freeze and Receivership Would Mean
An asset freeze prevents the company from moving or dissipating cash, accounts, or other property without court approval. A receivership places day-to-day control in the hands of an independent court-appointed professional whose primary duties are to preserve assets, investigate operations, and protect the interests of creditors and consumers.
If granted, such an order could disrupt ongoing services, prescription refills, and customer support. Patients would need alternative providers quickly. The government has acknowledged that the requested relief, combined with potential liability, could effectively end Zealthy’s operations.
Even without a final ruling, the existence of the motion has already affected the company’s relationships with banks, payment processors, and credentialing organizations.
Consumer Rights Under ROSCA and Related Laws
ROSCA requires online sellers that use negative-option or subscription billing to:
- Clearly and conspicuously disclose all material terms before obtaining billing information.
- Obtain the consumer’s express informed consent before charging.
- Provide a simple mechanism for the consumer to stop recurring charges.
Violations can support FTC enforcement actions and, in some circumstances, private claims under state consumer-protection statutes. Unauthorized charges may also give rise to chargeback rights under credit-card network rules and the Fair Credit Billing Act.
Patients who believe they were billed without proper consent or who faced unreasonable cancellation barriers may:
- Document every attempt to cancel (screenshots, emails, chat logs, dates and times).
- Contact their bank or card issuer promptly to dispute charges.
- File complaints with the FTC (ReportFraud.ftc.gov) and their state attorney general.
- Monitor the federal case docket for any future claims administrator or redress program.
No official consumer settlement fund or claims process exists for Zealthy patients at this time. Cerebral’s earlier settlement created a limited redress program, but that did not cover Zealthy subscribers.
Practical Steps for Current or Former Zealthy Patients
- Cancel immediately if you no longer want the service. Use every available channel (app, website, email, phone) and keep records. Note that company policy generally treats membership and consultation fees as non-refundable once processed, and filled prescriptions cannot be returned.
- Review recent bank and card statements. Look for charges under Zealthy, Gronk, Bruno Health, ZFit, or similar names. Dispute unauthorized or post-cancellation charges with your issuer within the required time limits (usually 60 days under the Fair Credit Billing Act).
- Secure continuity of care. If you rely on GLP-1 medications or ongoing mental-health prescriptions, contact a new licensed provider or established telehealth platform promptly. Ask about transferring records and bridging prescriptions. Compounded GLP-1 products carry their own regulatory considerations; discuss FDA-approved options and safety with a clinician.
- Preserve evidence. Save screenshots of enrollment pages, pricing disclosures, cancellation attempts, and any communications. These records support chargebacks, complaints, or future claims.
- File official complaints. Submit detailed reports to the FTC and your state attorney general. Complaints help regulators and may later support class or individual recovery efforts.
- Watch for official notices. Any court-ordered redress program would typically require claims to be filed by a deadline. Reliable sources include the DOJ and FTC websites and the PACER docket for the Southern District of Florida case.
Broader Implications for Telehealth Regulation
The Zealthy litigation highlights ongoing tension in the rapidly growing telehealth and compounded-medication markets. Regulators have increased scrutiny of subscription models, prescribing oversight, data practices, and marketing claims. Patients benefit when platforms clearly disclose costs, obtain real consent, make cancellation straightforward, and ensure licensed clinicians actually evaluate and prescribe.
Health-tech observers note that high-volume, low-friction models can create pressure to cut corners on clinical review and consumer disclosures. The government’s focus on both billing practices and the integrity of the prescribing process signals that future enforcement is likely to address both financial and clinical risks.
Conclusion
The Zealthy Lawsuit remains active. The Department of Justice has asked the court for an asset freeze and receivership based on allegations of ROSCA violations, deceptive billing, and unauthorized prescribing. Patients who experienced unexpected charges or service interruptions have concrete rights under federal and state consumer law and practical tools (chargebacks, complaints, documentation) to protect themselves.
Stay informed through official government sources, secure alternative care if needed, and act promptly on any unauthorized billing. If your situation involves significant losses or complex medical needs, consult a consumer-protection attorney licensed in your state for individualized advice.
Frequently Asked Questions
Is Zealthy being shut down by the government?
Not yet. The DOJ has requested an asset freeze and receivership that could lead to the end of operations, but as of late 2026 the court has not granted that relief. The company continues to operate while defending the case.
Can I get a refund for unauthorized Zealthy charges?
Possibly through a credit-card chargeback or bank dispute if the charge was unauthorized or continued after a valid cancellation request. Document everything. No government claims process currently exists for Zealthy patients.
What should I do if my GLP-1 prescription is interrupted?
Contact a new licensed provider immediately. Many patients successfully transfer care to other telehealth platforms or local clinicians. Discuss bridging options and the regulatory status of compounded medications.
Does the Cerebral settlement cover Zealthy patients?
No. Cerebral’s 2024 settlement and redress program applied only to its own customers.
Where can I follow the official case status?
Check the PACER docket for Case No. 1:24-cv-21376 in the U.S. District Court for the Southern District of Florida, or official DOJ and FTC announcements.
Are the prescribing allegations proven?
They are serious allegations supported by discovery materials according to the government, but they have not been adjudicated. The company contests them.
Should I stop using telehealth platforms altogether?
Not necessarily. Many platforms operate with clear disclosures, straightforward cancellation, and proper clinical oversight. Research the company’s regulatory history, read recent consumer reviews carefully, and confirm that licensed clinicians perform the evaluations.
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