US regulators move to freeze assets of telehealth firm Zealthy over GLP-1 fraud claims
The US Department of Justice has filed for a preliminary injunction to freeze the assets of Zealthy, alleging the telehealth provider engaged in wide-ranging lawbreaking regarding compounded weight-loss drugs. The action follows a $5 million settlement involving Robertson’s previous firm, Cerebral, and coincides with Federal Trade Commission efforts to curb “negative option” marketing.
The US Department of Justice has initiated legal proceedings against telehealth company Zealthy, seeking a preliminary injunction to freeze the firm’s assets and appoint a court-appointed receiver. Regulators allege that Zealthy, led by chief executive Kyle Robertson, engaged in systemic improper and dangerous telemedical practices concerning the sale of compounded GLP-1 weight-loss drugs, harming tens of thousands of patients. This legal action follows a 2025 settlement in which Robertson paid $5 million to resolve allegations of deceptive cancellation practices involving his previous company, Cerebral. Zealthy currently operates under multiple brand names, including FitRx, RoenRx, and AMRx, all linked to the same physical addresses.
The DOJ’s amended complaint claims Robertson perpetrated law harming tens of thousands of telehealth patients. Internal communications cited in the filing include an April 2025 Slack message from a Zealthy engineer stating, “There have been so many illegal things Kyle makes ppl do it’s wild.” The judge has yet to rule on the DOJ’s motion to freeze Zealthy’s assets. During an attempt to speak with Robertson at the company’s Manhattan office, the CEO, described as 6'5" and unshaven, told a reporter to “please leave.”
Consumer complaints have highlighted a pattern of being charged for unwanted medications and unable to cancel subscriptions. One reporter reported being charged $866 for a three-month supply of tirzepatide vials after signing up for FitRx, a Zealthy subsidiary. Despite refusing the delivery, the reporter spent a week arguing with customer service representatives who cited vague privacy and supply chain concerns to prevent refunds. Another customer, Shane Albert, reported price increases and late deliveries that disrupted his treatment, while Nicole Butler alleged her medication was left in the sun, rendering it useless.
The Federal Trade Commission is advancing new rules regarding “negative option” marketing, where silence or inaction constitutes consent to be charged. This regulatory push follows consumer reports of being billed for unwanted medications and unable to cancel subscriptions. The FTC’s advanced notice of proposed rulemaking defines negative option marketing as a practice where the absence of affirmative consumer action constitutes consent to be charged for goods or services.
Zealthy’s customer service representative, identified only as “Jojie,” refused to confirm their surname and directed inquiries to email, which reportedly went unanswered. The company operates under multiple names, including FitRx, RoenRx, and AMRx, all linked to the same physical addresses. The DOJ’s amended complaint claims Robertson perpetrated law harming tens of thousands of telehealth patients. The judge has yet to rule on the DOJ’s motion to freeze Zealthy’s assets.
