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$500K
Connecticut Attorney General William Tong announced settlements with SunRun, Inc., Elevate Solar Solutions, and two salespeople over allegations of deceptive solar sales, including impersonating consumers and locking homeowners into long-term contracts without consent. SunRun must pay $300,000 and provide consumer relief; Elevate and the salespeople face a stated $200,000 penalty, with $100,000 suspended subject to ongoing compliance.
$8.0M
Connecticut announced an $8 million settlement with Mylan over allegations that it used agreements to delay generic EpiPen competitors and took other actions that inflated prices. Mylan also agreed to provide 10,000 free EpiPens; the release states that Mylan denies wrongdoing.
Connecticut Attorney General William Tong joined a coalition of 22 attorneys general in filing an amicus brief challenging DHS’s policy and practice of conducting warrantless civil immigration arrests. The press release describes a court challenge, not a privacy enforcement action or monetary penalty.
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.