Published Aug 3, 2026, 5:00 AM EDT
Trajector has been accused of deceptive practices that take advantage of vulnerable of "hundreds, if not thousands" of former service members.
A federal class-action lawsuit accusing a medical company of deceptive practices and upcharging disabled veterans up to $20,000 for Department of Veterans Affairs (VA) benefits is halted due to the company filing for bankruptcy. Trajector Holdings, LLC and 21 affiliated entities filed for Chapter 11 bankruptcy on July 23, in the midst of a pending nationwide class-action lawsuit filed by the law firm Aylstock, Witkin, Kreis & Overholtz. Trajector is accused of excessively charging disabled veterans for VA disability claims assistance that federal law requires be provided free of charge. Court records show the company's estimated liabilities significantly exceed its assets, according to the suit. Military.com previously reported how the Pensacola, Fla.-headquartered firm filed the class-action case on April 10 in the U.S. District Court for the Central District of California, alleging that Florida-based companies Trajector, Inc. and Trajector Medical, LLC, performed services on veterans’ behalf, such as assistance with the preparation of VA disability claims, without proper VA accreditation and in violation of federal law. The 58-page complaint accuses Trajector of charging exorbitant fees that go beyond what can be charged by VA accredited representatives who assist with claim preparation, ranging between $4,500 to more than $20,000. But the bankruptcy filing triggers an automatic stay that halts the class action in the Northern District of Florida. That is, unless a bankruptcy judge permits it to proceed and pulls veterans who claim they were unlawfully charged for VA claims assistance out of a jury trial and into bankruptcy proceedings. "Bankruptcy doesn't erase what Trajector did. It also doesn't mean that our claims just go away," Jennifer Byrd, head of AWKO’s VA disability practice, told Military.com. "Everything for the class action is stayed, pending what happens in the bankruptcy. A lot of the questions that all of us have will be answered by the bankruptcy judge or the trustee. "What we want veterans to know is that all those veterans who pay Trajector to prepare their disability claims now should have current claims as unsecured creditors in bankruptcy, and we can ask questions, provide guidance to anyone who wants to kind of get in that arena as a creditor veteran. We want to make sure that their rights are protected."
