HDL, Singulex to pay $48.5 million to settle dispute under False Claims Act: Latest update
Health Diagnostics Laboratory Inc is in news for all the wrong reasons. The company has reportedly agreed to pay a massive a huge amount of money to settle long-standing dispute under False Claims Act
Fine of $48.5 million has been imposed on two leading medical testing laboratories in the US. Now after realizing that they have no way out, the two labs have finally agreed to pay $48.5 million in fine.
This was the only way out for the two laboratories to settle the lawsuit regarding needless testing and unfair trade practices under the False Claims Act. This is one of the biggest fines imposed on labs in United States.
But almost the entire amount except $1.5 million has to be paid by Health Diagnostics Laboratory Inc (HDL) that is based in Richmond, VA. They have to pay as much as $47 million to settle the lawsuit while Alameda-based Singulex Inc. will pay $1.5 million in fines. Latest reports suggest that Singulex has refused to accept any malpractices while HDL has not spoken a word on the latest controversy.
In the meantime the two laboratories have also been charged for trying to give bribe to doctors for recommending patients for blood tests which were not required in most of the cases. Reports suggest that physicians were actually paid between $10 and 17 for referring patients for blood tests to the laboratories.
Such malpractices were reportedly rampant till very recently and Department of Justice (DOJ) reports suggest that such cases happened at Singulex Incorporated between January 2010 and October 2014.
In the meantime while commenting on the issue Singulex Inc. said, â€œSingulex has entered into an agreement with (the Department of Justice) that fully resolves the investigation, and Singulex denies any wrongdoing. Singulex entered into the agreement to avoid protracted and expensive litigation and in order to move forward with the Company’s business.â€