Austin-based Genotox Laboratories agreed to pay upward of $5.9 million to settle False Claims Act allegations related to third-party market commissions, the Justice Department said April 4.
The lab allegedly paid kickbacks to independent contractor sales representatives and marketing firms from 2014 to 2020, according to a news release. Under the settlement, Genotox "admitted and accepted responsibility" for paying them a portion of revenues received from billing Medicare, the Railroad Retirement Board and Tricare for lab testing orders facilitated or arranged by the representatives.
The settlement also resolves allegations that Genotox submitted claims to Medicare, the RRR and Tricare for tests that were not covered or not necessary from 2014 to 2022, the Justice Department said.
The lab will pay $5.9 million and additional money pending financial contingencies.