You seem to suspect there may be some abuse/ neglect going on where you purchased your pup.... I doesn't sound like your definite about anything yet, I hear a lot of maybes,mights & suspicions at this point .....so maybe the best thing to do is make a report w/ the local humane society or animal cruelty dept. in the area where the breeders live. Just tell them what you "suspect" & ask if they could check on the pups & dogs welfare....
When you stand by & watch wrong being done & do nothing, it amounts to passive support. So in a sense, if you don't report it, your part of the problem...there is no confusion, your probably feeling some fear to be strong & afraid of the repercussions. Sometimes there is a price to pay doing what's right. Either it needs some attention or it doesn't...only you can decide that, we weren't there.
To try & recoup your money on the vet bills may require a trip to the court house to file a small claims case against them. (Do you have a written health guarantee?) If their in another state than you I believe you have to file in their state. That in itself will create a major problem for you to pursue this, sometimes when people are served w/ court papers it creates fear & they may just send you your money w/o having to appear in court... I can't offer any advise on your papers...but it doesn't sound good at this point of getting them....
I hope things work out for you & this is the last health problem you both have to deal with...Good luck...