Ameritox Wins $14.8 million Verdict Against Millennium Laboratories

The litigation between Ameritox and Millennium Laboratories has come to an end—for now—with Ameritox coming out on top. A federal jury in Florida awarded Ameritox $14.8 million to compensate it for claims that Millenium had engaged in unfair competition due to its distribution of hundreds of thousands of free point-of-care urine testing cups that included testing strips and had a retail value of about $5 apiece. The award included $12 million in punitive damages. The Baltimore-based Ameritox sued the San Diego-based Millennium in 2011, claiming that the distribution of the testing cups amounted to kickbacks and illegally cut into its business. Millennium countersued, but the jury rejected its claims. “All Ameritox wanted was a level playing field, and we’re pleased that the jury rejected Millennium’s practice of providing free point-of-care test cups to physicians,” said Scott Walton, Ameritox’s chief executive officer. “The ruling underscores our belief that the significant health care challenges facing our country require steadfast adherence to the highest compliance standards, ethical business practices, and quality of service.” In a statement, Millennium said it vehemently disagreed with the verdict and that it was compliant with all statutes regarding kickbacks. “Although the jury’s decision impacts Millennium’s cup program in only four states, affecting only a small percentage of our customers, we have voluntarily agreed to suspend the program nationwide and will take immediate action to ensure full compliance while we appeal the decision,” the company said. “The jury’s decision does not affect the vast majority of Millennium customers, who either purchase cups and seek reimbursement for that testing or choose not to perform point of care testing at all.” Takeaway: The use of seemingly innocuous medical devices for marketing can wind up costing a laboratory millions of dollars in the long run.