Legal News

AG to announce details of med lab suit

By Richard Binder

The state is suing seven private medical laboratories, alleging they overcharged Medi-Cal as much as 400 percent for lab tests conducted over the last 15 years and costing the program hundreds of millions of dollars.

The suit, which was originally filed under seal by an executive at a competing lab, seeks to recover at least $100 million worth of the excessive charges paid by the program that provides health services to the poor.

California Attorney General Jerry Brown is expected announce on Friday details of the civil lawsuit against the companies, five of which are in Los Angeles. Attorney general spokesman Scott Gerber said his office joined the lawsuit to discourage other companies from defrauding the government, especially amid a statewide economic crisis.

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Full post as published by Legal Pad | LA on March 20, 2009 (boomark / email).