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ARC Faces $8M Fraud Lawsuit Over Medicaid Misuse

1/22/2026

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Story summary
  • Addiction Recovery Care (ARC) faces a federal lawsuit in New York alleging Medicaid and Medicare fraud.
  • The plaintiff Angelica Capital Trust claims ARC owes $8 million and is withholding funds.
  • The matter includes a whistleblower suit that triggered a federal investigation into ARC's practices, and ARC had received $8 million from the Internal Revenue Service (IRS).
  • A court hearing on Angelica Capital Trust's injunction request occurred on January 21.