Genotox Laboratories agreed to pay at least $5.9 million to settle charges it violated the False Claims Act (FCA) by paying volume-based commissions to third-party marketers and submitting claims to federal healthcare programs for unnecessary drug tests.

As part of the settlement, Texas-based Genotox entered into a five-year corporate integrity agreement with the Department of Health and Human Services Office of Inspector General. In a parallel proceeding, the lab entered into an 18-month deferred prosecution agreement (DPA) with the U.S. Attorney’s Office for the Western District of Texas.