On July 24, the Department of Justice announced that Admera Helath LLC, a New Jersey-based company that provides genomic and bioinformatic services to researchers and clinical laboratory testing services to healthcare providers, has agreed to pay $5,389,648 to settle allegations that it violated the False Claims Act by paying commissions to third party independent marketers in violation of the Anti-Kickback Statute.

The settlement resolves a qui tam whistleblower lawsuit filed by relators Sunil Wadhwa and Ken Newton, who are the co-founders of Financial Halo LLC/MedXPrime, previously a third-party marketer for Admera. The whistleblowers will receive $862,343 of the total share from the settlement.

The False Claims Act’s qui tam provisions enable private citizens and private parties to file lawsuits on behalf of the government if they know of an individual or company defrauding the government. Qui tam whistleblowers can receive between 15 and 30% of the government’s recovery.

The government alleges that from September 1, 2014, through May 21, 202, Admera provided commission-based compensation to independent contractor marketers “in return for recommending or arranging for the ordering of genetic testing services,” which is a violation of the Anti-Kickback statute (AKS).

According to the government, “Admera has admitted that it made millions of dollars of commission payments to independent-contractor marketers (the Marketers) to induce them to arrange for or recommend that...

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