What the Government Alleges
Zealthy is a subscription telehealth company, founded by Kyle Robertson after he left the mental-health startup Cerebral, that sells weight-loss, mental-health, and other prescription products online. In June 2024, the U.S. Department of Justice and the Federal Trade Commission sued Zealthy and related entities and executives in federal court in Florida, alleging deceptive business practices under the FTC Act and the Restore Online Shoppers Confidence Act, known as ROSCA.
The government alleges Zealthy advertised low prices and easy cancellation to lure consumers into subscriptions that were then hard to cancel, charged higher-than-advertised or unauthorized amounts, and made cancellation deliberately difficult. Later filings added allegations that the company used doctors national provider identifiers without their knowledge to issue prescriptions, that non-clinicians influenced prescribing, and that it posted fake reviews. These are government allegations, which the case will test, not proven findings.
The Asset-Freeze Bid
The case escalated sharply. In 2026, the DOJ asked a court to immediately freeze Zealthy assets and place the company into receivership, describing what it called a runaway campaign of lawbreaking and arguing the move was needed to preserve money for potential consumer redress. The government alleged that after Zealthy lost a key industry certification in 2025 for failing to disclose the lawsuit, it created shell companies to keep processing payments, and that executives bought their own subscriptions to mask the rate of customer chargebacks.
As of this update, the asset-freeze and receivership request was before the court. The related company Cerebral had earlier resolved its part of the broader matter through a settlement that required reforms and payments without an admission or denial of the allegations, while the claims against Zealthy continued.
Other Actions
Zealthy also faced legal pressure on other fronts. The drugmaker Novo Nordisk sued the company in 2025 over how it marketed compounded weight-loss products in relation to brand-name semaglutide medicines, and the FDA issued warning letters to Zealthy operating entity over compounded medications. Separately, reports in early 2026 described a data-security incident involving patient records.
Taken together, the Zealthy matter is less a single lawsuit than a cluster of government enforcement and private actions. For consumers, the most relevant thread is the FTC and DOJ billing case, since that is the one most likely to produce a consumer-redress process if the government prevails or settles.
How to Get Legal Help
If you were charged by Zealthy for a subscription you could not cancel or did not authorize, document the charges and contact your bank or card issuer to dispute them, and keep records in case a government consumer-redress fund is later established. Because the government case is ongoing, watching for an official redress process is the practical step rather than relying on third-party claim sites.
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Zealthy Lawsuit: The FTC and DOJ Telehealth Case: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What is the Zealthy lawsuit about?
The FTC and DOJ sued the telehealth company in June 2024, alleging deceptive billing under the FTC Act and ROSCA, including advertising easy cancellation while making subscriptions hard to cancel and charging unauthorized amounts. Later filings added allegations about misusing doctors identifiers and fake reviews. These are unproven allegations.
Who runs Zealthy?
Zealthy was founded by Kyle Robertson, who previously founded and was ousted from the telehealth company Cerebral. Cerebral separately resolved its part of the broader matter through a settlement with reforms and payments, without admitting or denying the allegations.
What is the asset freeze about?
In 2026 the DOJ asked a court to freeze Zealthy assets and appoint a receiver, alleging the company created shell companies to keep processing payments after losing a key certification and masked customer chargebacks. The request was before the court as of this update.
Are there other Zealthy lawsuits?
Yes. Novo Nordisk sued Zealthy in 2025 over marketing of compounded weight-loss products, the FDA issued warning letters over compounded medications, and reports in 2026 described a patient-data incident. The FTC and DOJ billing case is the central consumer matter.
What can I do if Zealthy charged me?
Document the charges and dispute them with your bank or card issuer, and keep records in case a government consumer-redress fund is established. Because the case is ongoing, watching for an official redress process is wiser than relying on third-party claim sites.