A San Diego-based genetics testing company will pay nearly $2 million to settle a lawsuit that alleged they made false claims to give prostate cancer patients a test they did not need.
GenomeDx Biosciences Corporation was accused of improperly billing Medicare from Sept. 2015 to June 2017 for a test called Decipher, which is intended for men after prostate removal surgery to determine a patient's cancer risk factor, according to the GenomeDx website.
The company agreed to pay $1.99 million to settle the lawsuit, including $350,000 to the two whistleblowers -- employees of GenomeDx -- who first raised the red flag federal authorities, the U.S. Attorney's office said.
GenomeDx did not claim any wrongdoing in settling the suit.
The U.S. attorney's office criticized GenomeDx for taking advantage of the health care system.
The test was allegedly given to patients who did not have the stages of cancer that would benefit from the test and was "medically unnecessary and unproven," Attorney General Joseph Hunt said following the results of the settlement.
The lawsuit was brought on following a joint investigation between the Department of Justice, the Health and Human Services Agency, the Federal Bureau of Investigations and the U.S. attorney's office.