Headline : Labcorp to pay $2.1 million to settle DOJ lawsuit for allegedly overbilling Defense Department

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Laboratory Corporation of America will pay the U.S. $2.1 million to settle allegations that it overbilled the Department of Defense for genetic tests that involved children and fetuses, the Department of Justice announced Monday.

A former LabCorp employee turned whistleblower, Donna Hecker-Gross, sued the diagnostic testing company in 2018 on behalf of the federal government under the False Claims Act. The civil lawsuit was filed in the U.S. District Court for the District of Maryland.

Hecker-Gross will receive $357,000 as part of the settlement, according to the DOJ.

Hecker-Gross' allegations surrounded genetic tests performed under a contract LabCorp entered with the Defense Department in 2012. Under the contract, the company provided laboratory testing to DOD military treatment facilities around the world, including tests it paid genetic testing company GeneDx to perform. 

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