June 02, 2011 9:02 am ET
In the one of the biggest Medicare fraud settlements involving a clinical laboratory company, Corning Inc. agreed yesterday in Boston to plead guilty to Federal fraud charges and pay $119 million in criminal fines and civil penalties.
The Government said the settlement covered ''literally millions of fraudulent claims'' at Damon Clinical Laboratories Inc., which Corning acquired in 1993. Corning said the claims involved marketing and billing practices at the laboratories before Corning acquired them.
Like a number of other laboratory companies, Damon admitted to billing Federal Government agencies for blood tests that were not considered medically necessary but were performed along with legitimate tests requested by physicians. The United States Attorney's office in Boston said Damon, formerly based in Needham, Mass., had agreed to plead guilty to charges of conspiring to defraud the Federal Health Care Financing Administration. Damon agreed to pay a criminal fine of $35.3 million and to pay back $83.7 million to Federal health programs.
Damon agreed to pay a criminal fine of $35.3 million and to pay the government $83.7 million to settle the whistleblower lawsuits.