Attorneys for a whistleblower announced that they had reached a settlement in a lawsuit against former medical testing company Reditus Laboratories.
Attorneys for Lorine LaGatta, a former medical director at a lab affiliated with Reditus, said that a $5.5 million settlement had been reached to provide resolution to a lawsuit filed in federal court in June 2022.
Her complaint alleged that Reditus and its CEO, Aaron Rossi, exploited the COVID-19 pandemic to make money from the government. She also alleged she was fired to silence her after she raised concerns internally, but she proceeded to file a whistleblower suit that prompted investigations by state and federal authorities.
Under the settlement, $3.5 million will be paid to the United States, the state of Illinois and Peoria County to reimburse taxpayers for improper payments made through a series of COVID testing schemes organized by Reditus during the pandemic. Other payments will resolve the wrongful termination claims and pay LaGatta's legal fees.
LaGatta said the settlement was a victory for accountability.
"Taxpayers should never have to foot the bill for improper billing," LaGatta said. "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."
In the complaint, filed in June 2022, LaGatta said that Rossi and Reditus used...
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