US News
New York and Illinois plan legal action against disability assistance firm Trajector
NPR reports that state officials accuse the company of deceptive practices as it seeks bankruptcy protection.
The short version
- Attorneys general in New York and Illinois announced plans to take legal action against Florida-based Trajector Medical over alleged deceptive business practices.[NPR]
- Trajector Medical, which charges military veterans up to $20,000 for disability claims help, filed for Chapter 11 bankruptcy following civil class-action lawsuits and falling revenue.[NPR]
- Company representatives deny all allegations of wrongdoing and contend that the bankruptcy protection filing is unrelated to executive real estate purchases.[NPR]
Key facts
- Attorneys general in New York and Illinois sent a court letter expressing intent to sue Trajector Medical for alleged fraudulent and deceptive business practices.[NPR]
- Trajector Medical and 21 affiliated entities filed for Chapter 11 bankruptcy protection shortly before an impending $63 million loan default.[NPR]
- Trajector's revenue fell roughly 60 percent in the first half of 2026 due to legal and regulatory adjustments.[NPR]
- Trajector's CEO bought a $5.75 million oceanfront home in late 2025 that is designated as principal corporate offices but omitted from company assets in court documents.[NPR]
What remains uncertain
- The outcome of state law enforcement investigations and potential criminal or civil charges against Trajector Medical remains unresolved.[NPR]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.