Cigna Beats Lab’s $2.5M Lawsuit Over Urine Drug Tests

Cigna Health & Life Insurance Co. defeated a lawsuit by a drug testing laboratory that sought to recover nearly $2.5 million in alleged unpaid services it provided to Cigna insureds.

AvuTox LLC lacked statutory standing to sue Cigna because it failed to allege that it had received a valid assignment of benefits under the Employee Retirement Income Security Act, Judge Terrence W. Boyle of the U.S. District Court for the Eastern District of North Carolina held Dec. 7.

Boyle’s decision is a victory for Cigna and the latest development in a series of cases by out-of-network providers, specifically toxicology labs, ...