ProPhase Labs, Inc. (NASDAQ:PRHP) reported Monday that it became aware of the unsealing of a previously sealed civil lawsuit under the False Claims Act in the United States District Court for the Eastern District of New York. The company stated that it learned of the unsealing on November 21, following a court order dated November 4, 2025.
The civil action, titled United States of America, State of New York, and State of New Jersey ex rel. Kenneth Hennrick v. ProPhase Labs , Inc., et al., was originally filed in 2023 without the company’s knowledge. ProPhase Labs said it did not receive notice of the unsealing or the filing until November 19, 2025, and had no prior awareness of the sealed action.
According to the company’s statement, the unsealing is a standard procedural step in False Claims Act cases and does not reflect any finding or conclusion by the court or governmental authorities. The company noted that under federal law, parties to a sealed qui tam action are prohibited from providing notice while the matter remains under seal.
ProPhase Labs reported that, as of the date of the filing, neither the United States nor the Plaintiff States have intervened in the matter, and the company has not been served with the complaint. The company said it has not received any indication from governmental authorities that intervention is anticipated, nor has it received any inquiries or requests for information related to the unsealed filing.
The company stated that all private...
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