Infinity Law Group backs whistleblower suit against American Healthcare Systems

Infinity Law Group says it is representing former American Healthcare Systems finance executive Michael Duong in a retaliation lawsuit filed in Los Angeles County Superior Court. The complaint alleges he was fired less than 48 hours after warning AHS leadership about accounting and financial practices that could endanger hospital operations and patient care.

Why it matters: - The lawsuit raises fresh scrutiny of how hospital systems manage cash, debt and reporting when those decisions can affect patient care and local vendors. - The complaint frames the case as a whistleblower retaliation dispute, which can shape how employees in finance and compliance report internal concerns. - Duong alleges the practices he reported could threaten AHS hospitals and the communities they serve.

What happened: - Infinity Law Group announced it is representing former American Healthcare Systems Corp., Inc. senior finance executive Michael Duong in a whistleblower-retaliation lawsuit. - Duong filed the complaint on July 27, 2026, in Los Angeles County Superior Court. - Duong alleges he was terminated less than 48 hours after formally reporting concerns to AHS leadership. - On November 4, 2025, Duong says he warned AHS's CEO and Chief Legal Officer about the issues and asked not to be retaliated against.

The details: - Duong served as Corporate Controller and says he had visibility into financial operations across AHS's hospital network. - The complaint alleges inaccurate financial reporting, delayed accounting and audits, unpaid tax liabilities, and withholding required financial information from lenders. - The lawsuit also alleges AHS used hospitals as collateral for additional loans. - Duong says hospital CFOs told him corporate headquarters was sweeping funds from hospital accounts. - The complaint says those transfers left facilities short on resources to buy patient-care supplies and pay local vendors. - Infinity Law Group counsel Sabina Sadykhova said the case matters because people who believe patient care could be at risk should be able to speak up. - Infinity Law Group partner Ilya Filmus said the speed of the alleged termination stood out and that whistleblower laws are meant to protect good-faith reporting. - The case is Michael Duong v. American Healthcare Systems Corp., Inc., et al., Los Angeles County Superior Court, Case No. 26NNCV05926. - Duong is represented by Ilya Filmus and Sabina Sadykhova of Infinity Law Group LLP.

Between the lines: - The complaint links financial controls to frontline hospital operations, which can make an accounting dispute more consequential than an internal corporate disagreement. - The lawsuit also lands as AHS-owned hospitals face broader public scrutiny over financial and operational challenges. - Infinity Law Group says those separate reports underscore the need to protect employees who raise good-faith concerns.

What's next: - The case will move through Los Angeles County Superior Court unless the parties reach an early resolution. - The lawsuit could test how a court views the timing between Duong's report and his termination. - Further filings may clarify AHS's response to the allegations and the evidence behind the claimed financial practices.

The bottom line: - Duong's case turns a hospital finance dispute into a test of whistleblower protections when internal warnings are followed almost immediately by termination.