The House Select Subcommittee on the Coronavirus Crisis is holding a hearing.
A Los Angeles, California-based COVID-19 testing company has agreed to pay a $22 million settlement after being accused of falsifying test results and providing false advertising.
One complaint alleged that the company, which operated under the Sameday Health name, had falsely advertised that it could provide test results within 24 hours, even though it knew it was unable to do so a press release from Los Angeles Attorney Mike Feuer.
Home test kits, specifically Celltrion DiaTrust COVID-19 Ag home tests, were stacked for delivery in Boston on January 5, 2022. (Photo by Lane Turner/The Boston Globe via Getty Images/Getty Images)
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When that promise failed, the company allegedly falsified the results of at least 500 customers by manipulating old PDF lab reports and, in some cases, sending the falsified results to customers before their samples had even been shipped to a lab for testing.
In some cases, customers were reportedly receiving “negative” test results without the company knowing if this was actually the case.
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“It is beyond outrageous that anyone would falsify COVID tests as we claim has happened here. If you get a negative test, assume it’s safe to go to work, visit family and friends, or take vacations,” Feuer said in a statement. “But the victims of this alleged plan may have unknowingly transmitted COVID to others or failed to receive timely and adequate care themselves,” Feuer said. “I just got over COVID myself and I know how important it is to have accurate test results. This landmark resolution will stop this alleged system, provide consumers and insurers with compensation, and impose severe penalties.”
Registered Nurse Dave Ballard, 47, uses a nasal swab to test a person for coronavirus disease (COVID-19) (Reuters/Cheney Orr / Reuters)
The company, led by CEO Felix Huttenbach, has agreed to pay the City of Los Angeles $22.5 million to complete a $3.9 million settlement between the city and Dr. to target Jeff Toll, who was said to be a partner in the alleged plan.
The complaints also allege that Sameday Health and Hüttenbach conspired with Toll to commit insurance fraud by hitting insurance companies that were already paying for COVID-19 testing with an additional fee for unnecessary medical consultations.
A person receives a throat swab from a healthcare worker at a drive-thru testing site at the Bismarck Event Center amid the ongoing coronavirus disease (COVID-19) outbreak in Bismarck, North Dakota, the United States, October 26, 2020. Reuters/Bing Guan (Reuters/Bing Guan/Reuters photos)
Sameday Health operates 55 testing sites across the country, including 16 in Los Angeles County, and has generated tens of millions in revenue since the coronavirus pandemic began, according to the press release.
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Sameday Health issued its own press release, admitting that it had not met the “standard of excellence” that its “customers” deserved.
“Sameday Health was founded in September 2020 to make fast and reliable Covid testing available to everyone,” the company’s statement said. “In the early days, amidst the chaos of massive increases in service demand and supply shortages, we failed to meet the standards of excellence our clients deserve. We have addressed the issues that emerged in 2020 and have made significant investments in compliance and systems to ensure we meet our customers’ expectations.”
The statement continued, “We have agreed to come to terms with the LA State’s Attorney and District Attorney to move forward and allow the 1200 men and women of Sameday to focus on delivering first class to the communities we serve.” provide services.”