New Jersey Lab Fraud Whistleblower Advances Retaliation Suit

A whistleblower can proceed with his suit alleging that New Jersey-based diagnostic medical laboratory Spectra Holdco LLC—formerly known as Shiel Holdings LLC—punished him in retaliation for calling attention to Medicare and Medicaid fraud.

Former sales representative Michael Waldman adequately alleged that Spectra terminated his employment because of his complaints about an alleged scheme to use incorrect billing codes to maximize reimbursements for laboratory procedures, Judge Nicholas G. Garaufis of the US District Court for the Eastern District of New York said in a Tuesday order denying the company’s motion to dismiss.

Demonstrating retaliation under the False Claims Act requires showing ...