Federal Judge dismisses National Billing Inst. (NBI) from fraud lawsuit

On December 10, 2020, in the Central District of California, The Vanguard Clinic, Nova Integrated Health, Gossett Global Health Solutions and their owners, chiropractors Michael Glickert, Taylor Vanden Wynboom and Tommy Gossett, filed a lawsuit against the National Billing Institute, LLC (NBI), Kareo, Inc. (Kareo) and Resonant Specific Technologies (RST). NBI is a national medical billing company.

Kareo is a medical billing software company. RST developed and manufactures Sanexas neoGEN (“Sanexas”), an FDA- cleared medical device used to treat chronic pain. RST sells and distributes Sanexas to healthcare providers nationwide.

The Vanguard plaintiffs alleged breach of fiduciary duty, intentional and negligent misrepresentation, concealment, constructive fraud, rescission, conversion and unlawful business practices related to Medicare coverage and billing for Sanexas treatments. On October 11, 2022, United States District Judge John A. Kronstadt dismissed NBI from the lawsuit. Previously, on May 17, 2021, Judge Kronstadt dismissed the complaint against Kareo.

The Vanguard Clinic, LLC, et al. v. National Billing Institute, LLC, et al., Case No. 2:20- cv-11234-JAK-PD, Central District of California (Western Division – Los Angeles)