Addiction Recovery Care faces lawsuit over tax receivables amid $28M DOJ settlement

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.