Kang Haggerty Supports Whistleblower in Significant $2 Million Settlement Against RCA

Kang Haggerty’s Triumph in Whistleblower Case Against Recovery Centers of America

In a groundbreaking case that underscores the importance of whistleblowers in safeguarding both public interest and taxpayer resources, Kang Haggerty LLC has successfully represented a whistleblower in a False Claims Act (FCA) suit against Recovery Centers of America (RCA). This significant action resulted in a settlement of $2 million, aimed at rectifying a series of serious allegations against the treatment facility.

The announcement, made on December 15, 2025, by the U.S. Attorney for the Eastern District of Pennsylvania, David Metcalf, highlighted the essential role of collaborative agencies in resolving this case. This particular settlement arose after investigations led by the Drug Enforcement Administration (DEA) and additional support from the Department of Health and Human Services Office of Inspector General, along with the Office of Personnel Management. The coordinated effort involved insights from Assistant U.S. Attorneys Peter Carr and Charlene Keller Fullmer and the invaluable expertise of former auditor Dawn Wiggins.

The core allegations surrounded RCA's improper handling of controlled substances, breaching the Controlled Substances Act (CSA). Furthermore, investigations indicated that RCA had charged government programs, including Medicaid and the Federal Employees Health Benefits Program, for treatment services that were inadequately provided or improperly documented between 2017 and 2019. This misconduct led to significant losses for taxpayers and raised serious concerns regarding patient safety and the integrity of healthcare provision.

The whistleblower, whose identity remains confidential for protection, was a former Outcomes Supervisor at RCA's headquarters in King of Prussia, Pennsylvania. By invoking the qui tam provisions of the FCA, this courageous individual took a stand against the alleged malpractices, ultimately yielding their rightful share of the settlement—$230,000 for the whistleblower—along with an additional $450,000 to settle anti-retaliation claims under the FCA’s anti-retaliation provision, which safeguards whistleblowers against punitive actions.

Kandis Kovalsky, a member of Kang Haggerty, emphasized, “This case underscores the vital role whistleblowers play in protecting both patients and taxpayers. Our client demonstrated tremendous courage in coming forward to report misconduct, and this resolution reflects the importance of holding treatment facilities accountable when they fail to meet their obligations under federal law.”

The comprehensive investigations revealed alarming discrepancies, including unlawful dispensing practices at RCA facilities in both Pennsylvania and Maryland, missing controlled substances, and a troubling lack of recordkeeping. Such malpractices, uncovered during audits from 2019 to 2024, highlighted systemic issues within RCA’s operational framework.

The settlement is a significant achievement not just for the whistleblower but for the integrity of health services as a whole. It sends a clear message about the consequences of misconduct in the healthcare sector and the robust mechanisms in place to address such violations.

Kang Haggerty LLC, a prominent business litigation law firm with offices in Philadelphia, PA, and Marlton, NJ, is known for representing whistleblowers in False Claims Act cases and for advocating accountability in both public and private sectors. Through this victory, they reinforce their commitment to justice and ethical standards in healthcare.

For further information about their work and resources, visit Kang Haggerty LLC.

This notable case reflects the ongoing struggle and eventual triumph in the battle against fraud and misconduct within health services and serves as an encouragement for others to come forward when witnessing wrongdoing.