DOJ Seeks to Freeze Zealthy Assets Over GLP-1 Scam Allegations Harming Tens of Thousands
Updated
Updated · WIRED · Jun 11
DOJ Seeks to Freeze Zealthy Assets Over GLP-1 Scam Allegations Harming Tens of Thousands
1 articles · Updated · WIRED · Jun 11
Summary
A federal judge is weighing a DOJ request for a preliminary injunction that would freeze Zealthy’s assets and place the telehealth company under a court-appointed receiver.
The amended complaint alleges Zealthy and CEO Kyle Robertson used deceptive enrollment, unauthorized GLP-1 shipments, hard-to-cancel subscriptions and other improper telemedical practices that harmed tens of thousands of patients.
Customers described charges far above advertised prices — including one $866 tirzepatide order and another case topping $1,500 — then said refunds were blocked after shipping labels were created or cards had to be replaced.
Robertson and Zealthy did not respond to repeated requests for comment; a 2025 settlement in a separate DOJ-FTC case required Robertson-linked Cerebral to pay $5 million over cancellation and privacy practices.
The case lands as online weight-loss prescribing expands rapidly: 11% of GLP-1 users get drugs through telehealth, a channel projected to grow 24% annually toward a $150 billion market.
After a $5M penalty, how did one CEO's new telehealth firm allegedly scam tens of thousands more patients?
Are your weight-loss drugs prescribed by a doctor or a call center? A new lawsuit reveals shocking telehealth dangers.
Zealthy’s Assets Frozen: DOJ and FTC Target $2.35 Billion Telehealth Giant for Fraud, Receivership, and Industry Reform
Overview
The Department of Justice and Federal Trade Commission have taken urgent action against Zealthy, freezing its assets and seeking receivership after whistleblower complaints revealed that the company’s medical director’s credentials were used without consent to submit medication orders. The complaints allege that CEO Robertson directed non-clinicians, including overseas call center workers, to make clinical decisions and issue large numbers of prescriptions under medical professionals’ names, all without their knowledge. These serious allegations of fraudulent medical practices and operational misconduct have triggered a major government response to protect patients and ensure accountability as legal proceedings move forward.