What remains of Reditus Labs will pay out $5.5 million to settle a lawsuit sparked by a whistleblower who was one of the first to spot fraud inside the now-defunct Central Illinois COVID testing giant.
The settlement will send $2.3 million back to the state and federal government that were among the victims of the fraud, plus $87,500 for Peoria County, according to a copy of the settlement provided to WGLT. The whistleblower, Dr. Lorine LaGatta, will get $1.1 million for blowing the whistle, plus $1.5 million for her individual claims of wrongful termination and another $500,000 to cover her legal fees.
LaGatta’s attorney, David Fish, announced Tuesday that the settlement had been reached. Court filings confirm the settlement, although a few loose ends remain that leave the case pending.
LaGatta first approached Fish's firm while she was still medical director at Tri-County Pathology, a company closely linked to Pekin-based Reditus, Fish said. She wasn’t looking to sue, he said. She just wanted to protect herself and her co-workers after observing suspicious activity at work.
Ultimately, Fish said LaGatta’s 2022 complaint helped spark investigations by state and federal authorities that put Reditus CEO Aaron Rossi behind bars. Reditus itself went out of business.
“Dr. LaGatta is a real hero,” said Fish. “She came forward with no monetary expectation. She just wanted to see that her co-workers and herself were protected, and to make sure the right thing was being done. For...
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