What You Need to Know

• After filing the complaint, plaintiffs learned that the defendant was already the subject of a criminal investigation in Texas.
• Normally a federal investigation takes years to complete, but plaintiffs said once the DOJ intervenes, the case will likely settle.
• The settlement amount was based on the amount of fraudulent Medicare claims the plaintiffs submitted and what the DOJ thought they could pay.

Robert Snyder of Cannella Snyder recently secured a $5.9M settlement in a federal whistleblower lawsuit against a Texas laboratory in the U.S. District Court for the Southern District of Georgia. Snyder said the case moved fast by the standards of federal Food and Drug Administration complaints and was resolved before the defendants were ever served.

After securing the settlement against, Texas laboratory Genotox, the plaintiffs dropped their complaints against the other defendants. “I do think [those claims had] merit; there were just questions of collectability, time spent by lawyers and the client, and just wanting to have closure and move on,” Snyder said.

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