Labcorp to pay $2.1M in third party overbilling case
By 
Adrianne Appel2023-03-28T18:43:00
Laboratory Corporation of America (Labcorp) agreed to pay $2.1 million to settle allegations the company overbilled the Department of Defense (DoD) for genetic tests performed by a third party.
The Department of Justice (DOJ) announced the settlement Monday for violations of the False Claims Act (FCA). The complaint against Labcorp was originally filed by a former employee, Donna Hecker-Gross, under the qui tam provisions of the FCA. Hecker-Gross will receive $357,000 from the settlement amount.
The details: Labcorp entered into a contract with the DoD in 2012 to provide testing services for U.S. military worldwide. The company then subcontracted with GeneDx to conduct specialty genetic tests. GeneDx billed LabCorp for the tests, and Labcorp would then bill the DoD.
Related articles
-
PremiumThree TPRM myths worth busting
There are stories we tell ourselves in third-party risk management (TPRM) to make ourselves feel better about the corners we cut.
-
News Brief
DOJ: Former Magellan quality control director, execs misled public over lead tests
The former director of quality assurance at Magellan Diagnostics allegedly conspired with executives to conceal a critical flaw in lead tests they knew would result in tens of thousands of false negative tests among lead-exposed children.
-
News BriefGenotox Laboratories to pay $5.9M in DOJ kickback settlement
Genotox Laboratories agreed to pay at least $5.9 million to settle charges it violated the False Claims Act by paying volume-based commissions to third-party marketers and submitting claims to federal healthcare programs for unnecessary drug tests.
More from Regulatory Enforcement
-
ArticleLarge wound care practice pays $45M, agrees to monitoring
One of the largest wound care practices in the nation and its founder have agreed to pay $45 million and be subjected to third-party monitoring, to settle allegations that the business intentionally overbilled Medicare by priming its electronic medical records system to do so.
-
News BriefSEC dismisses SolarWinds case tied to 2020 cyberattack
The dismissal of charges against SolarWinds for alleged cybersecurity lapses related to a 2020 Russian cyberattack in 2020 are the latest in a continuing pattern of leniency for corporations by the Trump administration.
-
PremiumPart Two: FCPA cases closed by DOJ, SEC since January
Since the start of the Trump Administration, the Department of Justice has been winding down a number of Foreign Corrupt Practices Act investigations with little public attention. This second article further explores how and why these FCPA matters have been closed.