PEORIA (25News Now) - A settlement has been reached in a lawsuit paying $5.5 million to the government and to a whistleblower who helped send former Reditus Laboratories CEO Aaron Rossi to prison for defrauding taxpayers.
The whistleblower was Dr. Lorine LaGatta, a medical director at a Reditus affiliated lab, who raised concerns that Rossi and his Pekin-based firm were exploiting the COVID-19 pandemic to make money from the government.
LaGatta filed the lawsuit in 2022, which until now has been sealed, after she said she witnessed billing and kickback schemes.
A release from her lawyers said LaGatta was fired to silence her after she raised concerns internally.
LaGatta wound up filing the whistleblower suit that led to investigations by state and federal authorities, the release said.
Under settlement terms, federal, state and Peoria County authorities will share almost $2.5 million.
LaGatta gets $1.05 million as a reward for her whistleblower role. She’ll be paid another $1.5 million for wrongful termination, and the law firm representing her will receive $500,000.
“Taxpayers should never have to foot the bill for improper billing,” said LaGatta in a prepared statement. “This outcome isn’t just about one lab or one person – it’s about protecting our healthcare system and our communities. My hope is that this settlement leads to better safeguards and a reminder that no one is above the law, even during a crisis.”
Her attorney, David Fish, said LaGatta no longer lives in...
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