Two clinical laboratory chains agreed to pay the federal government a total of $11 million in a joint settlement of false-claims charges.
Corning Clinical Laboratories, Terterboro, N.J., and Unilab Corp., Tarzana, Calif., denied any wrongdoing in the settlement. They will pay $7 million and $4 million, respectively.
The U.S. attorney's office in Newark, N.J., which handled the case, alleged the companies submitted inflated claims to government programs from 1990 through 1993. The action was prompted by a suit filed in January 1995 by two former employees of a Corning subsidiary, who will collect $1.6 million of the settlement under federal whistleblower laws.
Earlier this year, Corning agreed to pay about $6.7 million to settle fraud charges against a firm it acquired (March 4, p. 46). Several laboratories have settled charges since 1993, when the government began a probe of the industry.