On November 7, 2026, the United States Department of Justice announced that Fountain Valley
On November 7, 2026, the United States Department of Justice announced that Fountain Valley, California-based clinical laboratory Lab Genomics LLC and its owner, Leena Dalal, agreed to pay $1.25 million to resolve allegations that they violated the False Claims Act through illegal kickback payments to marketers, justice.gov reported.
The settlement addresses allegations that from January 2020 through September 2022, Lab Genomics and Dalal knowingly paid value- and volume-based commissions to three independent contractor marketers. These payments were intended to induce the marketers to arrange for or recommend that healthcare providers order laboratory tests from Lab Genomics. According to justice.gov, the defendants structured invoices to mask the commission payments by making it appear that the laboratory was paying flat fees.
Whistleblowers File Qui Tam Lawsuit Under False Claims Act
The civil settlement resolves specific allegations originally brought forward in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. Private parties can file lawsuits on behalf of the government and share in a portion of the recovery. Whistleblowers Sunil Wadhwa and Ken Newton filed the case, and nationaldossier.com reported that they will receive $225,000 from the settlement proceeds.
The lawsuit is captioned United States ex rel. Wadhwa and Newton v. Admera Health, LLC, et al. Federal authorities previously resolved similar allegations against Admera Health LLC and NEXT Bio-Research Services LLC, doing business as Next Molecular Analytics, according to justice.gov records.
Anti-Kickback Statute Prohibits Remuneration for Medical Referrals
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals for items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. Federal officials emphasized that the law ensures medical providers base treatment decisions on patient interests rather than financial incentives.
The payment of kickbacks compromises the integrity of our healthcare programs,
said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division, as reported by justice.gov and nationaldossier.com. The Department will continue to pursue enforcement against those who profit from such unlawful kickback arrangements.
U.S. Attorney Eric Grant for the Eastern District of California added that evading federal healthcare safeguards is unlawful. Our office is committed to exposing and addressing such schemes, and we will continue to hold accountable those who knowingly violate the Anti Kickback Statute,
Grant stated in releases published by justice.gov and nationaldossier.com.
Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) noted that unlawful compensation arrangements place financial incentives ahead of independent medical judgment. When laboratories use unlawful compensation arrangements to generate referrals, they jeopardize the public’s trust and misuse taxpayer-funded health care dollars,
Bennett said.
Federal Agencies Handle Healthcare Fraud Resolution
The settlement was handled by Trial Attorney Elizabeth J. Kappakas in the Civil Division’s Commercial Litigation Branch and Assistant U.S. Attorney Catherine J. Swann in the Eastern District of California, with investigative assistance from HHS-OIG.
Federal agencies maintain reporting channels for individuals with information regarding potential waste, fraud, and abuse in federal healthcare programs. Complaints can be directed to the Department of Health and Human Services.
The resolution marks another step in federal efforts to curb healthcare fraud through the False Claims Act. The claims resolved by the settlement remain allegations only, and court records show no formal determination of liability against Lab Genomics or Leena Dalal.