Addiction Recovery Care faces lawsuit over tax receivables amid $28M DOJ settlement
Summary
A WKYT News Staff article published Jan. 21, 2026 reporting that Addiction Recovery Care agreed to a nearly $28 million settlement with the Department of Justice, according to information detailed in a lawsuit filed by Angelica Capital Trust. The article states that the lawsuit alleges ARC purchased more than $8 million in tax receivables from the company but kept the money from the IRS instead of forwarding it, and quotes the lawsuit's claim that ARC is wrongfully holding the money because it is in desperate straits. It adds that a deal for Ethema Health to acquire Addiction Recovery Care fell through earlier in the month, and that Angelica Capital Trust alleges ARC was keeping the tax receivables until it could close a deal with another buyer.
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Addiction Recovery Care faces lawsuit over tax receivables amid $28M DOJ settlement Company accused of withholding $8M from tax receivables purchaser Company accused of withholding $8M from tax receivables purchaser By WKYT News Staff Published : Jan. 21, 2026 at 5:01 PM EST Add Us On Google Add as a preferred source on Google KENTUCKY (WKYT) - Addiction Recovery Care agreed to a nearly $28 million settlement with the Department of Justice, according to information detailed in a lawsuit filed by Angelica Capital Trust. The lawsuit alleges ARC purchased more than $8 million in tax receivables from the company, but ARC kept the money from the IRS instead of forwarding it. According to the lawsuit, ARC is “wrongfully holding on to this money because it is in desperate straits.” Earlier this month, a deal fell through for Ethema Health to acquire Addiction Recovery Care. Angelica Capital Trust alleges in its lawsuit that ARC was keeping the tax receivables until it was able to close a deal with another buyer. Copyright 2026 WKYT. All rights reserved.
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