Legacy Medical Consultants, the Fort Worth wound care company, is or has recently been a party to at least five separate lawsuits: a defamation case against a YouTube investigator that settled with the video’s removal, three breach-of-contract actions against former healthcare partners (one settled in 2026, two still active), and a fraud-tracing suit in Florida that produced a notable appellate ruling on bank-record discovery in May 2026. The company itself has not been named in any federal enforcement action, though it operates in a sector Medicare regulators overhauled in 2026 after spending on skin substitutes climbed from roughly $250 million in 2019 to more than $10 billion in 2024.1CMS. CMS Modernizes Payment Accuracy, Significantly Cuts Spending Waste
Who Legacy Medical Consultants Is
Founded in 2020 and led by CEO Jonathan Knutz, Legacy Medical sells tissue-based wound coverings, primarily dehydrated human amniotic and chorionic allografts used on complex, non-healing wounds.2Patsnap Synapse. Legacy Medical Consultants LP3The Org. Jonathan Knutz, Legacy Medical Consultants The company reported over 500% annualized growth in unit sales through 2024.4Community Impact. Legacy Medical Consultants To More Than Double Headquarters Space in North Fort Worth
The Defamation Suit Against Spencer Cornelia
In November 2023, YouTuber Spencer Cornelia published an investigation alleging Legacy Medical ran a rebate scheme that could expose prescribing physicians to improper Medicare billing. The video described a private portal, said to be inaccessible to Medicare, where Legacy allegedly sent invoices showing rebates of up to 45%, with physicians directed to submit the full pre-rebate price for Medicare reimbursement rather than the net cost they actually paid. Cornelia also described what he called dual invoicing: one document for insurance purposes and another reflecting the price after rebates.5Patsnap Synapse. Legacy Medical Consultants LP
Knutz called the report “defamatory” and said it had “no basis in fact.” The company said its rebate programs are standard industry practice, that it does not fill out Medicare claim forms for providers, and that under federal safe harbor rules the customer is responsible for reporting rebate amounts to Medicare.5Patsnap Synapse. Legacy Medical Consultants LP
On November 28, 2023, Legacy Medical sued Cornelia, Brian Landow, Cornelia Media LLC, CanyonMD, and Nutracyte LLC in Tarrant County, Texas.6Trellis Law. Legacy Medical Consultants LP vs Spencer Cornelia Et Al The parties settled, and the video was deleted as part of that settlement; the specific terms were not publicly disclosed.7Bionavix. How the Skin Substitute Industry Broke
Contract Suits Against Providers and Distributors
Legacy Medical is the plaintiff in three breach-of-contract cases against former healthcare partners. In two of them, the defendants have filed counterclaims, including personal claims against Knutz.
Foot and Ankle Doctors — Settled
Legacy sued Foot & Ankle Doctors, Inc., Wendy Molina, and Farshid Nejad in August 2025 in the U.S. District Court for the Northern District of Texas, with the case assigned to Chief Judge Reed O’Connor.8Justia Dockets. Legacy Medical Consultants LP v Foot and Ankle Doctors Inc Et Al In February 2026, the court dismissed Molina and Nejad as parties, and Foot & Ankle Doctors filed counterclaims that Legacy moved to dismiss the following month. The parties reached a settlement through alternative dispute resolution in April 2026, and the case was dismissed without prejudice on June 4, 2026.9PACER Monitor. Legacy Medical Consultants LP v Foot and Ankle Doctors Inc Et Al
Conkling, Buzzatto, and Kloeblen — Active
Legacy filed suit in Tarrant County against Patricia Conkling (doing business as EastWest Health-ABQ LLC), Kylie Buzzatto, and Wade Kloeblen.10Trellis Law. Legacy Medical Consultants LP vs Patricia Conkling Et Al The case was removed to federal court in December 2025 and assigned to Judge Mark Pittman. The amended complaint attached a “Fulfillment & Rebate Agreement” and a purchase agreement as core exhibits. A settlement conference report was filed in early June 2026, and trial is set for the docket beginning November 9, 2026.11PACER Monitor. Legacy Medical Consultants LP v Conkling Et Al
Anodyne Pain and Wellness / L Squared Healthcare — Active
In December 2024, Legacy filed suit in the Complex Commercial Litigation Division of the Delaware Superior Court against Anodyne Pain and Wellness Solutions. The original defendants were dismissed without prejudice in March 2025, but L Squared Healthcare LLC entered as an active defendant, filed counterclaims, and later amended them to add third-party claims against Jonathan Knutz and Brian Rowan personally. In December 2025, Judge Eric M. Davis granted in part and denied in part Legacy’s motion to strike or dismiss L Squared’s amended counterclaim. A motion to dismiss hearing is scheduled for June 2026, and civil trial is set to begin January 25, 2027.12Delaware Courts. Legacy Medical Consultants LP v Anodyne Pain and Wellness Solutions
The Florida Fraud-Tracing Case
In November 2024, Legacy Medical sued Lawrence Waldman and Ontario Wound Management, LLC in Miami-Dade County, alleging intentional misrepresentation, negligent misrepresentation, conversion, and civil theft over allegedly misappropriated funds. Ontario Wound Management responded that it never kept the money for itself and had delivered it to third parties for payment to Legacy Medical.13Third District Court of Appeal, Florida. Ontario Wound Management LLC v Legacy Medical Consultants LP
The discovery fight reached the Third District Court of Appeal in 2026. Legacy had subpoenaed JPMorgan for two years of bank records, including wire transfers and withdrawal statements, to trace the flow of funds. Ontario Wound Management objected that the request was overbroad and sought confidential financial information. The trial court allowed the subpoena, and on May 6, 2026, the appellate court denied Ontario’s petition for certiorari, ruling that the electronic trail of funds is central to the dispute and the discovery is relevant to the pleadings.13Third District Court of Appeal, Florida. Ontario Wound Management LLC v Legacy Medical Consultants LP Court filings also list Brian Landow and Wound Medical LLC as cross-defendants in the trial court proceedings; Landow was also a defendant in the 2023 defamation case.14UniCourt. Legacy Medical Consultants LP vs Lawrence Waldman Et Al
The Medicare Rule Change Behind the Disputes
Every one of these cases sits inside a business model Medicare rewrote in 2026. Skin substitute spending under Medicare rose from roughly $250 million in 2019 to more than $10 billion in 2024, which regulators attributed to abusive pricing and products with limited evidence of clinical value.1CMS. CMS Modernizes Payment Accuracy, Significantly Cuts Spending Waste The HHS Office of Inspector General flagged the category in September 2025 as “particularly vulnerable to questionable billing and fraud schemes,” pointing to spread pricing as a key incentive.15HHS OIG. Medicare Part B Payment Trends for Skin Substitutes Raise Major Concerns About Fraud, Waste, and Abuse
Effective January 1, 2026, CMS reclassified skin substitutes from biologicals to “incident-to supplies” under the Medicare Physician Fee Schedule, replacing Average Sales Price reimbursement with a standardized flat rate of $127.28 per square centimeter for most products. CMS estimated the change would reduce fee-for-service spending on skin substitutes by roughly $19.6 billion in 2026.16Advanced Management. CMS 2026 Skin Substitute Payment Reforms Under the new model, reimbursement no longer scales with product acquisition cost, which removes the financial mechanism that made rebate-heavy pricing arrangements profitable.
Federal Enforcement Status
Legacy Medical has not been named as a defendant in any federal enforcement action to date. The National Association of Accountable Care Organizations described the company as one of the “two biggest abusers of the loopholes in the law” on skin substitute billing, alongside San Antonio-based Extremity Care.17Gooznews. A Band-Aid on a Huge Medicare Fraud Legacy has denied wrongdoing and has publicly opposed Medicare coverage restrictions it says could harm patient access to wound care.2Patsnap Synapse. Legacy Medical Consultants LP