Penalty Amount
$1,729,977
Connecticut Attorney General announced a $1.73 million settlement with Enzo Clinical Labs for overbilling the state Medicaid program. The lab billed Medicaid full prices while offering discounted rates to other payers, violating the state False Claims Act. The settlement resolves both an audit repayment and claims from a whistleblower investigation.
Enzo Clinical Labs must pay $1,729,977 to Connecticut to resolve allegations of Medicaid overbilling. The payment covers both the audit repayment of $981,951 and additional claims from a whistleblower investigation, with $238,369 going to the relator.
In-house legal teams should review all agreements where the entity provides services to government healthcare programs, particularly vendor contracts with state Medicaid agencies and customer agreements with private insurers. Key clauses to examine include pricing schedules (to verify consistent rate definitions), discount terms (to ensure no discriminatory pricing between Medicaid and other payers), billing and claims submission certifications (for compliance with program rules), audit rights and cooperation provisions (given the whistleblower-triggered investigation), representations and warranties regarding adherence to False Claims Acts, and indemnification or penalty allocation clauses. Potential changes may involve adding explicit rate parity requirements across all payer types, strengthening compliance certifications with specific Medicaid regulations, enhancing audit response procedures, and incorporating clearer termination rights for billing violations.
Entity
Enzo Biochem, Inc. and Enzo Clinical Labs, Inc.
Also known as: Enzo Biochem
Industry
Healthcare$29.6M
Attorney General Jennifer Davenport joined a coalition of 48 states and territories in a $29.6 million settlement with Glenmark, a generic drug manufacturer, for allegedly conspiring to artificially inflate and manipulate prices, reduce competition, and restrain trade for numerous generic prescription drugs. The settlement includes cooperation in ongoing litigations and internal reforms to ensure fair competition.
$29.6M
Attorney General William Tong led a coalition of 48 states and territories in a $29.6 million settlement with Glenmark, a generic drug manufacturer, to resolve allegations of a widespread conspiracy to artificially inflate prices, reduce competition, and unreasonably restrain trade for numerous generic prescription drugs. The settlement includes cooperation from Glenmark in ongoing multistate litigations and internal reforms to ensure fair competition and compliance with antitrust laws.
$18.0M
Attorney General William Tong led a coalition of 42 attorneys general in a settlement with the bankruptcy trustee for 23andMe, resolving allegations from a 2023 data breach that compromised the genetic data of 6.9 million customers. The settlement includes $150 million in allowed claims, with $18 million paid from bankruptcy funds, and requires enhanced data security measures for the new entity holding the data.
Attorney General William Tong joined a coalition of 12 attorneys general in suing to block the $110 billion acquisition of Warner Bros. Discovery, Inc. by Paramount Skydance Corporation. The lawsuit alleges the merger violates Section 7 of the Clayton Act by substantially lessening competition in theatrical film distribution and basic cable television licensing, which would harm consumers through higher prices and reduced quality.
Attorney General William Tong and 48 other attorneys general submitted comments to the FCC urging stronger rules to prevent scammers from accessing legitimate telephone numbers for illegal robocalls. The coalition is responding to the FCC's proposed rules and asks for measures such as stronger certification, reporting, and prohibitions on number cycling.
$45.0M
Attorney General Tong announced a $45 million multistate settlement with Block, Inc., the company behind Cash App, for misleading consumers about the safety of the platform, failing to protect users from fraud, and not providing promised fraud protection and resolution services. The settlement requires Block to implement major reforms including real customer support, transparent communications, and security commitments, and reaffirms Block's commitment to distribute between $75 million and $120 million to compensate consumers as part of a separate CFPB settlement.