LightRx Lawsuit: Reed Case, Bankruptcy, and Refund Complaints

The LightRx lawsuit most often asked about is Reed v. LightRx Face & Body, a personal injury and medical malpractice case filed in Colorado federal court in November 2023 and voluntarily dismissed within weeks. That single suit is not the whole story. LightRx also filed for Chapter 11 bankruptcy in 2019, closed 63 of its 88 locations, drew a Michigan Attorney General investigation, and has continued to accumulate consumer complaints about refunds, alleged laser injuries, and high-pressure sales through 2025 and into 2026.

The Reed Personal Injury Case

Elicia Reed, a Colorado woman, sued LightRx Face & Body and an individual employee named Eyvone Ricotta in the U.S. District Court for the District of Colorado on November 17, 2023. The case, Reed v. LightRx Face & Body et al., Case No. 1:2023cv03058, was brought under federal diversity jurisdiction and included a jury trial demand. The publicly available docket does not describe the specific injuries alleged.1Justia Dockets. Reed v. LightRx Face and Body et al.

A magistrate judge quickly ordered Reed to show cause why the case should not be dismissed for lack of subject matter jurisdiction. Reed filed a voluntary notice of dismissal without prejudice on December 8, 2023, and the court terminated the case three days later. Dismissal without prejudice means she kept the right to refile, but no refiled federal case appears in the available records.1Justia Dockets. Reed v. LightRx Face and Body et al.

No other publicly documented lawsuit against LightRx over its treatments or business practices appears in the available records.

The 2019 Bankruptcy and What It Did to Prepaid Customers

LightRx expanded fast in late 2017 and early 2018, opening 15 to 20 new locations and reaching 88 in total. When an expected $15 million investment from Chinese investors fell through, the company described a “spiral effect” of cash-flow problems.2Detroit Free Press. LightRx Laser Spas Now in Bankruptcy Could Get New Owners3Crain’s Detroit Business. Bankrupt LightRx Aims to Sell Remains of Spa Chain

LightRx closed 63 locations, dropping to 25. Customers who had prepaid for treatment packages at those closed clinics could not finish their sessions and had a hard time getting money back. One customer told the Detroit Free Press she had paid for 20 services, received only one, and was issued a $3,000 refund check that bounced. Another said a different LightRx location told her she had never been a suitable candidate for the treatment she had already started at the closed branch, and she got no refund.2Detroit Free Press. LightRx Laser Spas Now in Bankruptcy Could Get New Owners

On February 22, 2019, the company filed for Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Michigan under the name Premier Laser Spa of Louisville LLC, one of its operating entities. Judge Phillip J. Shefferly was assigned the case, and the filing listed liabilities of $10 million to $50 million.2Detroit Free Press. LightRx Laser Spas Now in Bankruptcy Could Get New Owners4INFOruptcy. Bankruptcy Case – Premier Laser Spa of Louisville LLC

A bankruptcy auction was set for May 8, 2019. The leading bidder, RVB Investment Group, included former LightRx investors and had provided emergency financing during the bankruptcy. RVB’s roughly $5 million bid included pledges to honor existing customers’ prepaid packages at the remaining locations. Founder Richard Morgan said the company had tried to contact clients of closed clinics and issued refunds where deemed “warranted.”2Detroit Free Press. LightRx Laser Spas Now in Bankruptcy Could Get New Owners

Consumer Complaints That Have Continued Since

The Better Business Bureau shows 110 complaints against LightRx in the three years preceding 2026, with 30 closed in the most recent 12 months. LightRx is not BBB accredited. Service or repair issues (48) and product issues (38) top the categories, followed by order, billing, and customer service disputes.5BBB. LightRx Customer Complaints

Recurring themes in those complaints include:

  • Refund disputes on prepaid packages. LightRx’s stated policy is that once a discounted package has been started, any refund is calculated by deducting the full non-discounted price of each session already used, which often leaves little or nothing to return.
  • Alleged injuries. Some customers describe burns, scarring, and severe pain after laser procedures. One complaint referred to “irreparable damage to skin” and burn scars following laser hair removal.
  • Unauthorized charges and aggressive sales. Multiple complaints allege unauthorized credit card charges and high-pressure consultation tactics. At least one customer said a payment was processed without consent after providing financial information.
  • Disputed verbal guarantees. Customers say staff verbally promised specific results to close a sale. LightRx responds that it does not guarantee treatment outcomes and that this is stated on its website and in signed consent forms.

The Care Credit Refund Trap

Many customers finance LightRx packages through third-party lenders like Care Credit, and refunds do not go back to the customer directly. LightRx processes the credit to the financing account, and complainants describe months-long delays while interest accrues on the balance and, in some cases, collection threats arrive.6BBB. LightRx Customer Complaints – Page 3

In a March 2025 complaint, a customer who financed $6,000 through Care Credit said the account remained in default status for months after she canceled for health reasons, before LightRx eventually processed a full refund. In an April 2025 complaint, a customer who financed $6,300 for facial skin tightening disputed the treatments’ effectiveness and asked for a refund; LightRx denied it, saying the package was non-refundable once treatments had started. Customers report that LightRx corporate does not provide a direct refund phone line, which several described as getting “the run around.”6BBB. LightRx Customer Complaints – Page 3

Regulatory Scrutiny and Current Status

The Michigan Attorney General’s Office opened an investigation into LightRx as complaints accumulated around the 2019 closures, and the company’s BBB rating dropped to an “F” during that period.2Detroit Free Press. LightRx Laser Spas Now in Bankruptcy Could Get New Owners7Crain’s Detroit Business. Consumer Complaints, Closings Pile Up at LightRx Medical Spa Based on available records, that investigation has not produced any publicly reported enforcement action, and no personal criminal or civil liability against founder Richard Morgan tied to LightRx’s business practices has been publicly documented.

LightRx continues to operate in 2026. Its website advertises promotional pricing and solicits consultations, with testimonials referencing locations in Virginia, Illinois, and Arizona among others.8LightRx. LightRx Face and Body The company came out of the 2019 bankruptcy at a fraction of its former size, and complaints about the same issues that surfaced then, particularly refunds and disputed results, have kept coming in the years since.