UTC Laboratories Settles FCA Charges for $42.6 Million
The Justice Department says UTC Laboratories (RenRX), a genetic testing company, and three of its principals will pay $42.6 million to resolve allegations that they violated the False Claims Act by paying kickbacks in exchange for laboratory referrals for pharmacogenetic testing and for furnishing and billing for tests that were not medically necessary. The company also agreed to a 25-year period of exclusion from participation in any federal healthcare program, according to a Justice Department statement.
The government alleges that between 2013 and 2017, UTC and its principals offered and paid remuneration to doctors to induce the ordering of pharmacogenetic tests, purportedly in return for their participation in the Diagnosing Adverse Drug Reactions Registry clinical trial. The government also alleges that UTC and its principals offered and paid remuneration, including sales commissions, to entities and individuals as part of the scheme, and furnished pharmacogenetic tests that were not medically necessary and billed Medicare.
The settlement resolves six whistleblower lawsuits pending in a Louisiana federal court. The statement does not disclose how much of the settlement will be paid to the whistleblower(s).