Illustrative artworkCalifornia lab and its owner agree to pay $1.25 million to resolve allegations of kickbacks to marketers
DOJ's Civil Division and the U.S. Attorney's Office for the Eastern District of California announced on November 6 that Lab Genomics LLC, a Fountain Valley, California clinical laboratory, and its owner Leena Dalal agreed to pay $1,250,000 to resolve False Claims Act allegations. The United States alleged that from January 2020 through September 2022 Lab Genomics and Dalal knowingly and willfully paid value- and volume-based commissions to three independent contractor marketers to induce them to arrange for or recommend that providers order lab tests, and structured invoices so the commissions looked like flat fees. The matter came from a qui tam suit; the relators will receive $225,000. The settlement agreement states $625,000 of the amount is restitution and that the agreement is neither an admission of liability by the laboratory and its owner nor a concession by the United States that its claims are not well founded. DOJ states the claims are allegations only and there has been no determination of liability. No Corporate Integrity Agreement is mentioned.
Medium priority · Nov 8, 2026 editionRead story →



