Fountain Valley, Calif.-based clinical laboratory Lab Genomics and its owner, Leena Dalal, have agreed to pay $1.25 million to resolve allegations that they paid illegal kickbacks to marketers, according to a Nov. 6 news release from a Justice Department.
From January 2020 through September 2022, Lab Genomics and Ms. Dalal allegedly paid commissions based on the value and volume of business to three independent contractor marketers to get healthcare providers to order and refer lab tests to the company. The lab and Ms. Dalal allegedly knew the payments violated the Anti-Kickback Statute and structured the marketers’ invoices to make the commissions look like flat fees.
The settlement resolves part of a whistleblower lawsuit filed by Sunil Wadhwa and Ken Newton, who will receive $225,000. The government previously resolved similar allegations in the same case against Admera Health and Next Bio-Research Services. The claims are allegations only, and there has been no determination of liability.
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