Genetics lab to resolve kickback allegations for $42M, lose billing privileges for 25 years

A New Orleans genetics laboratory reached a settlement with the federal government to resolve kickback allegations, according to the Department of Justice.

Between 2013 and 2017, RenRX and its principals paid physicians to order pharmacogenetic tests in return for their participation in a clinical trial called the Diagnosing Adverse Drug Reactions Registry, the DOJ alleges. Under the settlement, UTC Laboratories, doing business as RenRX, agreed to pay $41.6 million to resolve allegations that the lab violated the False Claims Act by paying physicians kickbacks for referrals for pharmacogenetic testing, as well as billing for medically unnecessary tests. 

The lab's three principals — Tarun Jolly, MD, Patrick Ridgeway and Barry Griffith — all agreed to pay an additional $1 million to resolve the claims.

RenRX will lose its federal billing privileges for 25 years under the settlement.

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