WASHINGTON — A federal court has ordered Veterans Guardian, one of the nation’s largest for-profit VA disability claims assistance companies, to pay veterans three times the amount it unlawfully collected from them, plus interest, in a major development in the fight against predatory Claim Sharks.
On Nov. 10, the U.S. District Court for the Middle District of North Carolina issued its ruling on damages in the Ford v. Veterans Guardian class action lawsuit. The court determined that Veterans Guardian owes veterans in the two certified classes treble damages for fees collected through its unlawful claims assistance practices. According to court documents, Veterans Guardian collected $347 million from class victims over this time period of the covered classes, meaning damages that Veterans Guardian must return to victims may exceed $1 billion.
The ruling follows earlier findings that Veterans Guardian operated as an unaccredited claims agent in violation of federal law and violated North Carolina's unfair trade practices law. The court also rejected the company's argument that the VA disability benefits veterans received should offset or eliminate its liability, finding that the unlawful fees themselves constituted financial injury. The parties will now determine the amounts owed for the final judgment, with a status conference scheduled for December 1.
"For more than a century, the VFW has fought to ensure veterans receive every benefit they have earned through their service, without having to pay someone to access them," said VFW Commander-in-Chief Cory Geisler. "There is a reason Congress established strict accreditation requirements for individuals assisting veterans with disability claims. Veterans deserve knowledgeable, accountable advocates who understand the system and put their interests first. Companies that circumvent those safeguards to profit from veterans' earned benefits have no place in the VA claims process."
The VFW has been the leading voice opposing Claim Sharks, which charge veterans substantial unlawful fees for assistance navigating a nonadversarial federal benefits system that provides access to accredited assistance at no cost. Unlike accredited representatives operating under VA's oversight, these companies have frequently sought to exploit gaps in enforcement and veterans' unfamiliarity with the claims process to extract a portion of their disability compensation.
"The VFW has never believed that a veteran should have to surrender a portion of their earned disability compensation simply because they need help navigating the VA claims process," said Geisler. "Our accredited service officers provide claims assistance without charge because we believe helping veterans secure the benefits they earned is a responsibility, not a business opportunity. This case demonstrates the financial harm these companies can cause and why stronger enforcement is necessary to protect veterans from those seeking to profit at their expense."
Over the past quarter-century, accredited veterans' advocates have worked with VA and Congress to expand access to VA benefits through legislative action, regulatory reform, technological innovation, and modernization of claims-processing procedures. Congress even expanded the marketplace to include legitimate paid options for claims assistance through well-regulated accredited claims agents and attorneys. These efforts have helped more veterans establish service connection, navigate the claims process, and receive timely decisions on their earned benefits through legitimate and accountable means. The VFW’s client base alone has grown by nearly 25 percent over the last decade according to VA data, growing from $7 billion in benefits paid to VFW clients in 2017 to $17.9 billion in 2026.
The VFW considers the growth of the VA claims system and the expansion of access to benefits a measure of progress, not an invitation for private companies to skirt the law and exploit veterans. Claim Sharks have built business models around extracting fees from veterans who are often unaware that accredited assistance – both paid and unpaid – is available to them or that substantial veteran-centric reforms have made VA benefits considerably easier to access.
Recent enforcement actions demonstrate growing recognition of the problem. In addition to the ruling against Veterans Guardian, Trajector, another major Claim Shark company, is in bankruptcy proceedings. Texas secured $6.8 million in debt relief for veterans harmed by Veteran Claims Insider, while Arizona secured $1.2 million in fraud restitution related to VetLink Solutions for violations of state consumer protection laws.
"These developments should send a clear message: veterans' benefits are not a revenue stream for companies looking to exploit those who served," said Geisler. "The VFW has repeatedly warned Congress about the dangers of Claim Sharks and called for meaningful enforcement of the laws already in place. We should not have to rely on individual veterans bringing expensive lawsuits or state attorneys general stepping in to protect them. Congress and VA must ensure that federal law is enforced, that bad actors are held accountable, and that veterans have access to trusted, accredited assistance without paying a price for it."
In a 2022 congressional hearing, the VFW specifically identified Trajector and Veterans Guardian as examples of companies whose practices warranted scrutiny and enforcement. The VFW continues to call on Congress and VA to strengthen oversight, close enforcement gaps, and protect veterans from unlawful claims assistance fees.