- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
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.
THIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.
News and analysis for the well-informed compliance or audit exec.
Annual Membership best value
Subscribe now for $365
Our lowest price ($1 per day) for one year.
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.
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.
Michigan-based Covenant Healthcare System paid $69 million to settle whistleblower allegations it engaged in illegal referral and kickback schemes.
Three former executives of Chicago-based Outcome Health, a healthcare technology company, were sentenced for misleading an auditor, clients, lenders, and investors about a scheme to sell $45 million in overbilled advertisements.
A home health company operating in Indiana, Ohio, and Texas agreed to pay nearly $4.5 million to settle allegations it filed false claims by giving sports tickets and other kickbacks to assisted living facilities in exchange for referrals.
Crypto-friendly Silvergate Bank will pay a total of $63 million penalties to California and the Federal Reserve Board to settle charges that its anti-money laundering program failed to properly monitor more than $1 trillion worth of customer transactions.
