LabCorp Loses Bid to Dismiss Whistleblower Blood Draw Fraud Suit

Laboratory Corp. of America Holdings must face a whistleblower lawsuit alleging the company participated in a scheme to bill Medicare for blood drawing services tainted by kickbacks to doctors, a South Carolina federal court ruled.

Whistleblowers Scarlett Lutz and Kayla Webster allege LabCorp provided blood drawing services to doctors who were receiving illegal kickbacks from third-party laboratories Health Diagnostic Laboratory and Singulex Inc. in exchange for the blood test service referrals.

A reasonable fact finder could conclude that it was foreseeable to LabCorp that the two labs would present claims for Medicare reimbursement for thee tests, Judge Richard M. Gergel ...