Labs In Court

A roundup of recent cases and enforcement actions involving the diagnostics industry

SCOTUS Agrees to Step in and Resolve Obamacare Constitutionality  Case: Before COVID-19, the health care issue that kept millions of Americans up at night was the future of the Affordable Care … [Read more...]

Labs In Court

WV Hospital & Marketer Accused of Elaborate Kickback Scam

 Case: A new DOJ lawsuit accuses a West Virginia non-profit hospital and its business consultant of seeking to dominate the Ohio Valley market by bribing physicians for referrals. The scheme began in … [Read more...]

Labs In Court

Texas Lab Loses $30.6 Million Whistleblower Suit over False Billing of Technician Travel Mileage

Case: A case that began as a whistleblower complaint by a competing lab ended with a $30.6 million judgment against a Texas lab for falsely billing Medicare for travel reimbursements. In addition to … [Read more...]

Labs In Court

Failure to Give Documents to Hospital Auditor Costs Lab Its Right to Be Paid for Test

What Happened: Blue Cross Blue Shield (BCBS) initiated a billing audit of an Alabama hospital after noticing its average urine drug tests had spiked from 30 to 1,100 per month. The hospital asked its … [Read more...]

Labs In Court

Labs In Court: A roundup of recent cases and enforcement actions involving the diagnostics industry

Texas Lab Loses $30.6 Million Whistleblower Suit over False Billing of Technician Travel Mileage Case: A case that began as a whistleblower complaint by a competing lab ended with a $30.6 million … [Read more...]

Labs In Court

Fired Lab Assistant Loses Defamation Lawsuit against Her Supervisor

Case: A lab assistant fired for poor performance claimed that her supervisor committed defamation by making the following oral remarks: “We’re letting you go because we feel you’re not a good fit … [Read more...]

Labs In Court

Lab Gets Chance to Prove Fraud Claims against Software Vendor at Trial

Case: After being hit with a slew of CLIA penalties, a toxicology lab hired a software and IT services firm to help get its information systems back into compliance. But while progressing toward … [Read more...]

Labs in Court

Drug Abuse Treatment Owner Guilty of $57 Million Drug Test Pass-Thru Billing Conspiracy

Case: The owner of a northern Florida substance abuse treatment center pleaded guilty for his role in a $57 million pass-through lab testing billing and money laundering scheme. The way it worked: The … [Read more...]

Labs In Court

Lab Management Contract Dispute Must Go to Binding Arbitration

Case: A lab management services contract sent conflicting messages: Clause 32 said that all disputes under the contract would be resolved by binding arbitration; but Clause 7 said that all claims … [Read more...]

Labs In Court

Lab Uses Billing Info of Another Lab to Get Around Payment Restrictions

Case: In 2015, Kentucky Medicaid and private payors began having doubts about the legitimacy of urine drug test claims submitted by CAL Laboratory Services and restricted payments to the toxicology … [Read more...]


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