The trustee appointed to manage the liquidation of Health Diagnostics Laboratory (HDL), the bankrupt blood testing lab that orchestrated a widespread kickback scheme, has filed a lawsuit against more than 100 consultants, executives and shareholders seeking more than $600 million in damages.
The lawsuit, filed earlier this month, alleges that former co-founder and former CEO LaTonya Mallory, HDL directors and consultants with BlueWave, a marketing firm that partnered with the lab, “engaged in repeated acts of self-dealing, and willfully and continuously violated the law through interrelated policies,” causing “catastrophic damage to HDL.”
In 2015, HDL agreed to pay $47 million to settle kickback allegations after a government investigation found the company paid physicians $20 for each blood sample. In 2014, the Office of Inspector General issued a fraud alert indicating that laboratory payments to physicians could be considered kickbacks. HDL’s case has prompted ongoing concerns regarding the government’s oversight of laboratories.