Zealthy Faces Federal Lawsuit, DOJ Pursues Penalties for Deceptive Billing & Privacy Violations—No Settlement Yet
The U.S. Department of Justice and Federal Trade Commission filed an amended complaint on May 31, 2024, against telehealth company Zealthy Inc. (also operating as Gronk Inc.), its founder Kyle Robertson, and executive German Echeverry, M.D., in the U.S. District Court for the Southern District of Florida (Case No. 1:24-cv-21376-JLK). The lawsuit alleges deceptive billing practices, unauthorized tracking of consumer health data, and predatory cancellation policies. Unlike related defendant Cerebral which settled for $5 million in consumer redress, Zealthy has not reached a settlement, and the DOJ continues pursuing civil penalties, injunctive relief, and monetary compensation for affected consumers.
Current status: The case remains active as of November 2025. No settlement has been announced, and no claims process is available yet for Zealthy consumers.
What Is the Zealthy Lawsuit About?
The federal government alleges that Zealthy, founded by former Cerebral CEO Kyle Robertson after he left that company in 2022, engaged in unfair and deceptive practices targeting consumers seeking weight loss medications and other telehealth services.
According to the amended complaint, Zealthy advertised low-cost prescription drugs to attract consumers, then charged higher-than-advertised rates and made cancellation nearly impossible. The DOJ alleges consumers routinely found their cancellation requests ignored or deflected, forcing them to incur recurring subscription fees despite repeated attempts to cancel.
The complaint further alleges Zealthy secretly tracked and collected consumer health data without fully informed consent, sharing this sensitive information with third parties for targeted advertising—similar to practices Robertson allegedly implemented at Cerebral.
Legal Claims Against Zealthy
The government’s complaint includes violations of three federal statutes:
Federal Trade Commission Act (15 U.S.C. § 45): Prohibits unfair or deceptive acts affecting commerce. The DOJ alleges Zealthy made false representations about pricing, cancellation processes, and data privacy practices.
Restore Online Shoppers’ Confidence Act (ROSCA) (15 U.S.C. §§ 8401 et seq.): Requires clear disclosure of material terms before obtaining billing information and informed consent before charging consumers. The complaint alleges Zealthy failed to disclose what consumers would be charged, how they could cancel and obtain refunds, or how their data would be used.
Opioid Addiction Recovery Fraud Prevention Act of 2018 (15 U.S.C. § 45d): Applies to substance use disorder treatment services. While Zealthy primarily markets weight loss services, the statute covers deceptive practices in telehealth services broadly.
Principal Deputy Assistant Attorney General Brian Boynton stated in June 2024: “The Justice Department is committed to stopping companies and their executives from mishandling and misusing individuals’ sensitive personal health information, and from implementing predatory billing practices.”
Who Is Being Sued?
Zealthy Inc. / Gronk Inc.: Delaware corporation founded December 2022 by Kyle Robertson. The company briefly filed for dissolution in October 2023, then immediately revoked the dissolution and changed its name to Gronk Inc. in March 2024. Despite the name change, the website getzealthy.com remains operational and continues accepting new patients as of 2025.
Kyle Robertson: Founder and CEO of Zealthy, former founder and CEO of Cerebral. Robertson allegedly directed the deployment of tracking technologies at Cerebral and replicated similar practices at Zealthy. He serves as both Zealthy’s CEO and Chief Financial Officer of affiliated medical corporation Bruno Health.
German Echeverry, M.D.: Zealthy’s Senior Medical Director and President of Bruno Health P.A., the affiliated Florida medical corporation providing telehealth services through Zealthy. Echeverry worked with Robertson to design Zealthy’s basic telehealth processes before the company launched.
Bruno Health P.A.: Florida professional association with principal address at 1501 Biscayne Boulevard, Suite 501, Miami, Florida, 33132 (changed from previous Miami Beach address in May 2024).
Specific Allegations Against Zealthy
The 70-page amended complaint details multiple deceptive practices:
False advertising and hidden costs: Zealthy advertised low prices for prescription medications to entice enrollment, then charged consumers substantially higher rates than advertised. Consumers report being charged $75-$135 biweekly for subscriptions they believed would cost significantly less.
Impossible cancellation process: The complaint alleges Zealthy failed to provide a simple mechanism to cancel subscriptions. Consumer complaints on Better Business Bureau and ConsumerAffairs show customers attempting to cancel for months, only to continue being charged. One consumer reported canceling in May 2025 but being charged through October 2025 despite multiple phone calls and online cancellation attempts.
Unauthorized recurring charges: Zealthy allegedly charged consumers’ credit cards before obtaining express informed consent and continued charging even after consumers requested cancellation. The DOJ alleges the company collected millions from recurring charges consumers never authorized.
Refund denials: When consumers discovered unauthorized charges, Zealthy frequently refused refunds, citing subscription policies consumers claim were never clearly disclosed at signup.
Unauthorized health data tracking: The complaint alleges Zealthy tracked, collected, and disclosed customer health data to third parties without fully informed consent, using the sensitive information for targeted advertising and commercial purposes.
Failure to disclose material terms: Before obtaining billing information, Zealthy allegedly failed to clearly inform consumers about subscription costs, billing frequency, cancellation procedures, refund policies, or data sharing practices.
Court Proceedings and Case Timeline
December 15, 2022: Zealthy Inc. files articles of incorporation in Delaware
February 10, 2023: Zealthy files articles of incorporation in Florida
October 25, 2023: Zealthy files Articles of Dissolution with Florida Department of State
October 26, 2023: Zealthy revokes dissolution the next day
March 25, 2024: Zealthy changes corporate name to Gronk, Inc.
May 31, 2024: DOJ and FTC file amended complaint in U.S. District Court for the Southern District of Florida, adding Zealthy, Robertson, and Echeverry as defendants
June 10, 2024: DOJ announces the amended complaint publicly, noting that Cerebral settled but the government continues pursuing claims against Zealthy
November 2025: Case remains active; no settlement announced
The case is pending before Judge Jose E. Martinez in the Southern District of Florida.
Why Cerebral Settled But Zealthy Hasn’t
On the same day the DOJ announced the amended complaint, Cerebral reached a settlement requiring the company to pay $5 million in consumer redress and a $10 million civil penalty (suspended to $2 million based on inability to pay). Cerebral also agreed to stop misusing patient information and misrepresenting privacy and cancellation practices.
Zealthy has not settled. The DOJ continues pursuing civil penalties, injunctive relief, and monetary relief against Robertson, Echeverry, and Zealthy. Legal experts suggest Robertson may be fighting the allegations more aggressively given his personal liability, or Zealthy may lack resources to pay a meaningful settlement.
Consumer complaints indicate Zealthy remained operational throughout 2024 and 2025, continuing to enroll new patients and run advertising campaigns despite the federal lawsuit.
What Relief Is the Government Seeking?
The DOJ’s complaint requests:
- Civil penalties for each violation of the FTC Act, ROSCA, and Opioid Act
- Injunctive relief requiring Zealthy to stop deceptive practices
- Monetary relief to compensate consumers harmed by Zealthy’s conduct
- Permanent injunction preventing future violations
- Disgorgement of ill-gotten gains from deceptive practices
The court has authority under Section 5(m)(1)(A) of the FTC Act (15 U.S.C. § 45(m)(1)(A)) to award civil penalties and under Section 19 of the FTC Act (15 U.S.C. § 57b) to order monetary relief for consumers.
Is There a Zealthy Settlement or Claims Process?
No settlement exists yet. Unlike the Cerebral case where affected consumers can apply for a share of the $5 million consumer redress fund, no similar claims process has been established for Zealthy customers.
If Zealthy settles or the court rules in favor of the government, a claims process would likely be established allowing affected consumers to:
- Submit proof of unauthorized charges
- Document failed cancellation attempts
- Recover subscription fees paid due to deceptive practices
- Potentially receive compensation for privacy violations
Consumers should preserve all documentation including:
- Subscription agreements and enrollment communications
- Credit card statements showing Zealthy charges
- Emails or chat logs attempting to cancel
- Screenshots of advertised prices versus actual charges
- Any communications with Zealthy customer service
Who May Be Eligible for Future Compensation?
If a settlement is reached, likely eligible consumers include:
- Anyone who subscribed to Zealthy services between December 2022 and present
- Consumers charged higher rates than initially advertised
- Customers who attempted to cancel but continued being charged
- Individuals denied refunds for unauthorized or post-cancellation charges
- Anyone whose health data was tracked and shared without informed consent
Geographic location does not appear to limit eligibility, as Zealthy operates nationally through its telehealth platform.
What Should Affected Consumers Do Now?
Dispute unauthorized charges: If Zealthy continues charging your credit card after cancellation, contact your card issuer immediately to dispute the charges. Federal law provides protections for unauthorized recurring charges.
File complaints: Report Zealthy’s practices to:
- Federal Trade Commission: ReportFraud.ftc.gov
- Your state attorney general’s consumer protection division
- Better Business Bureau
Document everything: Save all evidence of your interactions with Zealthy, including subscription terms, payment records, cancellation attempts, and communications with customer service.
Monitor the case: Check the DOJ website and court dockets for updates on Case No. 1:24-cv-21376-JLK. If a settlement is announced, you’ll need to file a claim within specific deadlines to receive compensation.
Consider arbitration waiver: Zealthy’s terms of service include a mandatory arbitration clause prohibiting class actions. However, government enforcement actions may override these provisions and create settlement funds available to all affected consumers.
Recent Developments and FDA Warning
In September 2025, the FDA issued a warning letter to FitRX, LLC d/b/a Zealthy regarding false and misleading claims about compounded semaglutide products (the active ingredient in Ozempic and Wegovy). The FDA stated Zealthy’s marketing implied compounded products were equivalent to FDA-approved drugs when they are not, violating sections 502(a) and 502(bb) of the Federal Food, Drug, and Cosmetic Act.
This regulatory action adds to Zealthy’s legal troubles and suggests the company continues operating despite the DOJ lawsuit.
Consumer Complaints Continue
Better Business Bureau records show Zealthy complaints throughout 2025, with recurring themes:
- Charges continuing for months after cancellation
- Inability to reach customer service
- Refund requests denied or ignored
- Billing for services never received
One consumer reported on October 26, 2025: “Subscription to Zealthy for $135 twice monthly was cancelled in MAY 2025. I have been repeatedly charged every 2 weeks since. THIS IS CRIMINAL AND STEALING.”
ConsumerAffairs reviews echo these concerns, with customers reporting unauthorized charges, ineffective medications, complete lack of communication from providers, and refund denials.
Impact on Consumer Protection and Telehealth Accountability
The Zealthy case represents part of a broader DOJ crackdown on telehealth companies exploiting the rapid growth of virtual healthcare services. In June 2024, the DOJ also indicted executives of Done Global for allegedly distributing Adderall improperly and committing healthcare fraud—marking the first drug distribution charges related to telehealth prescribing.
These enforcement actions signal that federal authorities are scrutinizing telehealth business models that prioritize growth and revenue over patient care, data privacy, and transparent billing practices.
The Zealthy lawsuit specifically targets practices where companies:
- Use low introductory prices as bait to lock consumers into expensive subscriptions
- Make cancellation deliberately difficult to maximize revenue
- Track and monetize sensitive health data without explicit consent
- Misrepresent privacy protections to gain consumer trust
Common Misconceptions About the Zealthy Case
Myth: The Zealthy lawsuit has been settled like Cerebral’s case Reality: Zealthy has not settled. The DOJ continues actively pursuing the company, Robertson, and Echeverry for civil penalties and consumer relief.
Myth: You need to join a class action lawsuit to get compensation Reality: This is a government enforcement action, not a class action. If Zealthy settles, the government will likely establish a claims process open to all eligible consumers without requiring participation in litigation.
Myth: Zealthy is out of business Reality: Despite filing for dissolution in October 2023, Zealthy revoked the dissolution immediately and continues operating under the name Gronk Inc. The website getzealthy.com remains active and accepting patients.
Myth: Only consumers who signed up before 2024 are affected Reality: Consumer complaints and advertising indicate Zealthy enrolled new customers throughout 2024 and 2025, meaning recently affected consumers may also be eligible for future relief.
What Happens Next?
The case will proceed through federal court unless Zealthy reaches a settlement with the DOJ. Potential outcomes include:
Settlement agreement: Zealthy could negotiate terms similar to Cerebral’s settlement, paying consumer redress and civil penalties while agreeing to reform business practices. This would trigger a claims process for affected consumers.
Court judgment: If the case goes to trial and the government prevails, the court could order substantial civil penalties, consumer restitution, and permanent injunctions against deceptive practices.
Continued operations: Unless enjoined by the court, Zealthy may continue operating pending resolution of the lawsuit, potentially affecting additional consumers.
Personal liability: Because the lawsuit names Robertson and Echeverry individually, they could face personal civil penalties and be barred from future involvement in similar businesses.
Related Internal Resources
For more information about consumer protection in healthcare and legal rights:
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- How Much Does a Debt Collection Lawyer Cost
- Should I Get a Lawyer for Debt Collection
Frequently Asked Questions
Is there a Zealthy settlement I can claim right now?
No. Unlike Cerebral which settled for $5 million in consumer redress, Zealthy has not reached a settlement agreement with the DOJ. The case remains active in federal court as of November 2025. Affected consumers should monitor the case for future settlement announcements.
How do I know if I’m affected by the Zealthy lawsuit?
You’re likely affected if you subscribed to Zealthy services between December 2022 and present and experienced: charges higher than advertised, inability to cancel despite requests, continued billing after cancellation, denied refunds, or privacy concerns about your health data being shared without consent.
What should I do if Zealthy is still charging my credit card?
Contact your credit card issuer immediately to dispute unauthorized recurring charges. Federal law protects consumers from billing errors and unauthorized charges. File complaints with the FTC and your state attorney general. Document all cancellation attempts and keep records of communications with Zealthy.
Will I automatically receive money if Zealthy settles?
No. If a settlement is reached, the government will likely establish a claims process requiring you to file a claim form and provide documentation of your losses within a specific deadline. You must actively participate to receive compensation.
Can I sue Zealthy separately for my losses?
Zealthy’s terms of service include a mandatory arbitration clause prohibiting class actions, which may limit your ability to sue independently. However, you can file individual arbitration claims or small claims court actions depending on the amount. Consult a consumer protection attorney to discuss your specific situation.
What documentation should I save for a potential future claim?
Preserve all evidence including: initial subscription agreements, advertised prices you saw before signing up, credit card statements showing all Zealthy charges, emails or screenshots showing cancellation attempts, customer service communications, and any documentation of how your data was used or shared.
How much compensation might I receive if there’s a settlement?
Unknown until a settlement is reached. Cerebral’s settlement provided $5 million in consumer redress for thousands of affected customers, suggesting individual payments may range from hundreds to potentially thousands of dollars depending on losses documented and number of claims filed. Zealthy’s settlement amount, if reached, would depend on negotiations between the DOJ and the company.
Disclaimer: This information is for educational purposes only and does not constitute legal advice. The Zealthy lawsuit involves complex legal issues with evolving developments. No settlement has been reached, and no claims process currently exists for Zealthy consumers. Consult an attorney for specific legal guidance regarding your situation. Monitor official DOJ announcements and court filings for updates on Case No. 1:24-cv-21376-JLK in the U.S. District Court for the Southern District of Florida.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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