BALTIMORE, MD – Laboratory Corporation of America (LabCorp) has recently agreed to pay $2.1 million to resolve allegations of violating the federal False Claims Act by overbilling the Department of Defense (DoD) for genetic tests performed by GeneDx, a third-party reference laboratory used by LabCorp for military members’ genetic testing.
According to the settlement agreement, between December 1, 2013, and June 30, 2021, LabCorp double and/or triple billed the DoD for genetic tests performed by GeneDx, overcharged the DoD for these tests, and inappropriately billed the DoD for tests performed by GeneDx when LabCorp could not later locate evidence of a DoD requisition form, GeneDx test result, and/or corresponding GeneDx invoice.
The civil settlement resolves a lawsuit filed by Donna Hecker-Gross, a former LabCorp employee, under the whistleblower provision of the False Claims Act. The Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. As part of the settlement, Ms. Hecker-Gross will receive $357,000. The settlement is not an admission of liability by LabCorp or a concession by the United States that its claims are not well-founded.