LabCorp discloses False Claims Act suit filed by competitor

LabCorp (LH) disclosed in its quarterly filing that On May 2, it was served with a False Claims Act lawsuit filed by a competitor laboratory, alleging that the company overcharged Georgia's Medicaid program. The case has been removed to the United States District Court for the Northern District of Georgia. The lawsuit seeks actual and treble damages and civil penalties for each alleged false claim, as well as recovery of costs, attorney's fees, and legal expenses, LabCorp said. The government filed a notice declining to intervene in the case. The company said it will "vigorously defend the lawsuit." The case is State of Georgia ex rel. Hunter Laboratories, LLC and Chris Reidel v. Quest Diagnostics Incorporated, et al.

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