Lawsuit alleges senior finance executive Michael Duong was terminated less than 48 hours after formally reporting financial practices he believed could threaten hospitals, patients and the communities they serve.

LAFAYETTE, Calif., August 24, 2026 Infinity Law Group LLP announced that it is representing former American Healthcare Systems Corp., Inc. (AHS) senior finance executive Michael Duong in a whistleblower-retaliation lawsuit alleging that he was terminated less than 48 hours after formally reporting financial and accounting practices he believed were unlawful, unethical and potentially harmful to AHS hospitals and the communities they serve.

Duong filed his complaint July 27, 2026, in Los Angeles County Superior Court. According to the complaint, Duong served as Corporate Controller with visibility into financial operations across AHS's hospital network. He alleges that he reported concerns including inaccurate financial reporting, delayed accounting and audits, unpaid tax liabilities, withholding required financial information from lenders, and the use of hospitals as collateral for additional loans. The complaint further alleges that hospital CFOs told Duong that corporate headquarters was sweeping funds from hospital accounts, leaving facilities without adequate resources to purchase patient-care supplies and pay local vendors.

On November 4, 2025, Duong formally reported his concerns to AHS's CEO and Chief Legal Officer. He warned that the practices could potentially harm hospital patients and communities and expressly asking not to be retaliated against. According to the lawsuit, AHS terminated him less than 48 hours later.

“When someone responsible for a hospital system's finances believes patient care could be put at risk, we want that person to speak up, not stay silent,” said Sabina Sadykhova, an attorney at Infinity Law Group and counsel for Duong. “What stood out to us was the seriousness of what Michael says he reported and the speed of what happened next. Whistleblower laws exist so employees can raise good-faith concerns without fearing that speaking up will end their careers,” said Ilya Filmus, partner at Infinity Law Group and counsel for Duong.

Duong's allegations come amid broader public scrutiny and reporting concerning financial and operational challenges at AHS-owned hospitals. While those reports involve circumstances separate from Duong's lawsuit, Infinity Law Group believes they underscore the importance of protecting professionals who raise good-faith concerns.

The lawsuit 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.