United States ex rel. NPT Associates v. Laboratory Corp. of Amer. Holdings

U.S. DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
Legal Profession

New York Law Journal

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Magistrate Judge Ronald Ellis

NPT Associates' False Claims Act qui tam action alleged Laboratory Corp.'s (LabCorp) false certification of compliance with the Anti-Kickback Statute. LabCorp allegedly submitted millions of dollars in false claims under a "pull-through" scheme designed to induce United Healthcare at unreasonably low prices so as to induce United Healthcare to recommend that in-network doctors send Medicare-reimbursable tests to LabCorp. NPT's former counsel Troutman Sanders and Michael Law Group withdrew after discovery revealed that one Troutman office represented LabCorp while another represented NPT. LabCorp also posited that NPT's members may have improperly relied on materials obtained through legal advice Troutman and Michael provided to members of the California Clinical Laboratory Association, including Quest Diagnostics and Lab Corp. Discussing United States ex rel. Fair Lab. Practices Assoc. v. Quest Diagnostics Inc. the court granted LabCorp discovery on the limited issue of whether NPT may be disqualified as relator because of knowledge potentially obtained via former counsel Troutman and Michael prior to withdrawal.

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