NeoGenomics to Pay $9.8 Million to Resolve Allegations of False Claims Act Violation
By Kelly Cloonan
NeoGenomics agreed to pay $9.8 million to resolve allegations that it violated the False Claims Act.
The Justice Department alleged that the cancer diagnostics company provided laboratory consulting services to 28 health care providers for less than fair market value to drive referrals for its clinical laboratory tests, violating the Anti-Kickback Statute and the Stark Law. Additionally, the DOJ alleged NeoGenomics paid variable referral-based compensation to independent consultants to identify health care providers that could refer patients to the company.
NeoGenomics said it self-disclosed the matter to the U.S. Department of Health and Human Services in 2021. The company said the settlement agreement isn't an admission of liability, nor a concession by the U.S. that its claims aren't well founded.
In connection with the settlement, the U.S. acknowledged that NeoGenomics cooperated with the government's investigation and took remedial measures. The company ended the consulting agreements in question, terminated responsible employees and provided the U.S. with a self-disclosure to assist the investigation, the DOJ said.
The company previously disclosed that it had accrued $11.2 million to cover potential damages and liabilities associated with the investigation.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
July 20, 2026 18:14 ET (22:14 GMT)
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