LabCorp obtains dismissal of qui tam action alleging violations of Anti-Kickback Statute and Medicare billing regulation

Client(s) LabCorp (Laboratory Corporation of America)

On behalf of Laboratory Corporation of America (LabCorp), a nationwide provider of health care diagnostic testing services, Jones Day successfully moved to dismiss a qui tam complaint filed in the U.S. District Court for the Southern District of New York under the federal False Claims Act (FCA) and the FCA analogs in 14 states and the District of Columbia. Relators alleged that LabCorp used discounting practices to wrongfully induce Medicare and Medicaid referrals in violation of the Anti-Kickback Statute and, in turn, the federal FCA and FCA analogs. Relators also alleged that LabCorp violated a purported Medicare billing regulation. LabCorp filed a motion to dismiss the complaint and won dismissal without prejudice on the basis of Rule 9(b).

United States ex rel. NPT Associates v. Laboratory Corporation of America Holdings, 07-cv-5696 (S.D.N.Y.)