LabCorp obtains complete dismissal of Virginia qui tam action alleging submission of false claims to Medicaid

Client(s) Laboratory Corporation of America

In one of the first cases litigated under the Virginia Fraud Against Taxpayers Act, an analog to the federal False Claims Act, Jones Day represented Laboratory Corporation of America (LabCorp), a nationwide provider of health care diagnostic testing services. Relators alleged LabCorp billed the Commonwealth's Medicaid program in violation of Medicaid regulatory rules and violated the federal Anti-Kickback Statute through its discounting practices. After representing LabCorp during the government's investigation and convincing the government to decline to intervene, Jones Day successfully removed the qui tam action to federal court in the Eastern District of Virginia and obtained complete dismissal of all claims, without opportunity to further amend, on the basis of Rules 12(b)(6) and 9(b).

Commonwealth of Virginia ex rel. Hunter Laboratories, LLC v. Quest Diagnostics, Inc., et al., Case No. 1:13-cv-1129 (E.D. Va. 2014)