New York Labs Must Continue to Face Covid-19 Testing Fraud Suit

New York City-based LabQ Clinical Diagnostics LLC and others must defend against the US government’s claims they violated the False Claims Act by improperly billing for covid-19 tests, a federal district court said Friday.

The government adequately alleged the defendants defrauded a pandemic-era program to help test uninsured individuals by claiming the defendants promised to confirm patients lacked insurance, when in fact they knew a patient had insurance that would cover test costs, Judge Lewis J. Liman of the US District Court for the Southern District of New York said in an opinion denying motions to dismiss.

The complaint provides ...