Kang Haggerty Represents Whistleblower in Successful $2 Million Qui Tam Action Against Recovery Centers of America

PHILADELPHIA, Dec. 15, 2025 /PRNewswire/ -- Kang Haggerty LLC is proud to announce that it represented the whistleblower in a False Claims Act (FCA) case that resulted in a $2 million settlement with Recovery Centers of America (RCA). The settlement resolves allegations that RCA mishandled controlled substances in violation of the Controlled Substances Act (CSA) and billed the government for inadequate treatment services in violation of the FCA.

United States Attorney David Metcalf announced the settlement on behalf of the U.S. Attorney's Office for the Eastern District of Pennsylvania. The resolution was the result of coordinated efforts among the Drug Enforcement Administration (DEA), the Department of Health and Human Services Office of Inspector General, and the Office of Personnel Management Office of Inspector General. The matter was handled by Assistant U.S. Attorneys Peter Carr and Charlene Keller Fullmer, along with former auditor Dawn Wiggins. Kang Haggerty attorneys Edward Kang, Kandis Kovalsky, and Ross Wolfe represented the whistleblower.

The United States alleged that audits and investigations conducted by the DEA revealed unlawful dispensing practices, missing controlled substances, and failures in recordkeeping at RCA facilities in Pennsylvania and Maryland between 2019 and 2024. In addition, from 2017 through 2019, RCA allegedly billed the Federal Employees Health Benefits Program and Medicaid for treatment services that were not properly provided or documented.

The whistleblower, a former Outcomes Supervisor at RCA's corporate headquarters in King of Prussia, Pennsylvania, filed suit under the qui tam provisions of the False Claims Act, which allow private citizens to bring claims on behalf of the government and share in any recovery. As part of the settlement, the whistleblower will receive $230,000.

In addition, as part of the global settlement, the whistleblower settled an anti-retaliation claim brought under the anti-retaliation provision of the FCA, 31 U.S.C. § 3730(h), for an additional $450,000, plus litigation costs and attorneys' fees.

"This case underscores the vital role whistleblowers play in protecting both patients and taxpayers," said Kang Haggerty member Kandis Kovalsky. "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 case is captioned U.S. ex rel. McLoyd v. TRC-OC, Trading as Recovery Centers of America Holdings, LLC, No. 17-cv-5164 (E.D. Pa.).

Kang Haggerty LLC is a boutique business litigation law firm with offices in Philadelphia, PA and Marlton, NJ. The firm has significant experience representing whistleblowers in False Claims Act cases, advocating for accountability, integrity, and justice in both the public and private sectors. For more information, please visit www.KangHaggerty.com.

SOURCE Kang Haggerty LLC