A federal class-action lawsuit accusing a medical company of deceptive practices and upcharging disabled veterans up to $20,000 for Department of Veterans Affairs (VA) benefits is halted due to the company filing for bankruptcy.
Military.com previously reported how the Pensacola, Fla.-headquartered firm filed the class-action case on April 10 in the U.S. District Court for the Central District of California, alleging that Florida-based companies Trajector, Inc. and Trajector Medical, LLC, performed services on veterans’ behalf, such as assistance with the preparation of VA disability claims, without proper VA accreditation and in violation of federal law.
The 58-page complaint accuses Trajector of charging exorbitant fees that go beyond what can be charged by VA accredited representatives who assist with claim preparation, ranging between $4,500 to more than $20,000.
But the bankruptcy filing triggers an automatic stay that halts the class action in the Northern District of Florida. That is, unless a bankruptcy judge permits it to proceed and pulls veterans who claim they were unlawfully charged for VA claims assistance out of a jury trial and into bankruptcy proceedings.
"Bankruptcy doesn't erase what Trajector did. It also doesn't mean that our claims just go away," Jennifer Byrd, head of AWKO’s VA disability practice, told Military.com. "Everything for the class action is stayed, pending what happens in the bankruptcy. A lot of the questions that all of us have will be answered by the bankruptcy judge or the trustee.
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