Attorney General Ellison announced a $4.87 million multistate settlement with GS Labs for overcharging patients, charging unlawful administrative fees, and failing to deliver timely COVID-19 test results. The settlement includes $3.63 million in restitution to affected consumers and $1.25 million to the multistate group, along with injunctive relief if GS Labs resumes operations.
GS Labs will pay $3,628,718.34 in restitution to patients and $1.25 million to the multistate group. If GS Labs resumes testing, it must disclose maximum turnaround times, report results within advertised timeframes, cease charging above-market rates to cash-paying patients, stop charging administrative fees, and cannot unjustifiably increase prices during emergencies.
In-house legal teams should review vendor agreements with healthcare testing providers, particularly clauses related to pricing transparency, fee disclosures, and service level commitments. Key areas include: (1) pricing provisions ensuring advertised cash prices reflect actual charges and any discounts are clearly disclosed; (2) prohibitions on charging administrative fees beyond what is contractually agreed; (3) service level agreements (SLAs) guaranteeing turnaround times for test results with penalties for delays; (4) compliance with state and federal consumer protection laws regarding emergency pricing; and (5) indemnification clauses for misrepresentations or overcharges. Customer-facing contracts (e.g., patient intake forms) should also be updated to ensure clear disclosure of all fees and expected service timelines.
Entity
GS Labs
Industry
Healthcare"GS Labs"
"$4.87 million multistate settlement"
"GS Labs intentionally advertised inflated “cash prices” for COVID-19 tests, sometimes as high as $380 per test or nearly $1,000 for multi-panel tests, that were used to justify overcharging patients with insurance coverage."
"Despite advertising that patients with insurance would have no out-of-pocket costs, the company charged administrative fees as high as $49 per test to about 70,000 patients."
"GS Labs will pay $3,628,718.34 in restitution to patients, including $1,843,375.99 for cash-paying patients that were overcharged for tests, $1,749,568.35 for patients that were charged administrative fees, and $33,692 for cash-paying patients that did not receive test results within three days."
"Minnesota co-leads bipartisan 18-state group in settlement"
$4.9M
Colorado Attorney General Phil Weiser and a bipartisan coalition of 18 attorneys general announced a $4.87 million settlement with GS Labs, a former COVID-19 rapid testing business. The company was found to have violated the Colorado Consumer Protection Act by falsely advertising test results with no wait times, same day appointments, and no out-of-pocket expenses, while overcharging consumers and insurance providers.
This press release is about a court temporarily blocking the merger of Warner Bros. Discovery and Paramount Skydance Corporation based on antitrust concerns under the Clayton Act. It is not a privacy-related enforcement action. The Minnesota Attorney General joined a multistate coalition to challenge the merger, and the court granted a temporary restraining order.
$29.6M
Minnesota Attorney General Keith Ellison joined a 48-state coalition in a $29.6 million settlement with generic-drug manufacturer Glenmark to resolve allegations of a widespread conspiracy to artificially inflate and manipulate prices, reduce competition, and restrain trade for numerous generic prescription drugs. The settlement requires Glenmark to cooperate in ongoing multistate lawsuits and implement internal reforms to ensure compliance with antitrust laws.
The Minnesota Attorney General filed a lawsuit against Maduro Distributors, Inc. (doing business as Loon) for illegally manufacturing, distributing, and selling flavored vapes that appeal to minors, using flavors like 'Cotton Candy' and 'Blue Razz Slushy' and kid-friendly characters. The lawsuit also alleges Loon deceptively marketed its products as accepted for FDA approval when they were not. The state seeks a permanent injunction, civil penalties up to $25,000 per violation, restitution, and attorney fees.
$18.0M
A coalition of 42 state attorneys general reached a settlement with the bankruptcy trustee for 23andMe over a 2023 data breach that compromised the genetic data of 6.9 million customers. The settlement provides $18 million from bankruptcy funds, with Minnesota receiving $514,871, and imposes data security requirements on the successor entity, 23andMe Research Institute.
Attorney General Ellison and 48 other attorneys general called on the FCC to strengthen rules to cut off scammers' access to legitimate telephone numbers. The coalition is responding to the FCC's proposed rules to combat illegal robocalls and texts, which cost Americans nearly $2 billion last year.