US laboratory pleads guilty and agrees to at least $6.8m settlement over alleged doctor kickbacks
Report date: (original source date). Article publication date: .
Report an error or privacy concernSummary
Clinical Laboratory LTD Holding LLC, formerly Labtech Diagnostics LLC, and CEO Joseph Labash agreed to pay at least $6.8 million to resolve False Claims Act allegations concerning kickbacks to doctors. The settlement may increase by up to $3,271,536 if a financial contingency occurs. The DOJ said the allegations relate to payments intended to induce laboratory-testing referrals between August 2018 and November 2021.
Separately, Labtech agreed to plead guilty to five Anti-Kickback Statute counts and pay $103,551.90 in restitution. The DOJ said the resolution brings total civil recoveries relating to Labtech, including settlements with nine doctors, to more than $11.5 million.
The case highlights the need for healthcare companies to scrutinise referral-related payments and maintain controls that protect clinical independence. Incomplete payment descriptions in the source mean no specific kickback mechanism should be inferred.