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Laboratory Corp. of America Holdings alleged to have charged excessive rates

LEGAL NEWSLINE

Wednesday, December 25, 2024

Laboratory Corp. of America Holdings alleged to have charged excessive rates

Law money 10

GREENSBORO, N.C. (Legal Newsline) – Several consumers allege that a laboratory testing service company charges fees that are in excess of fair market prices.

Sheryl Anderson, Zina Brenner, Mary Carter and Tena Davidson, individually and on behalf of all others similarly situated filed a complaint on Oct. 10 in the U.S. District Court for the Middle District of North Carolina, Greensboro Division against Laboratory Corp. of America Holdings alleging violation of the Alabama Deceptive Trade Practices Act and North Carolina Unfair and Deceptive Trade Practices Act (UDTPA).

According to the complaint, while engaging in the business of providing laboratory testing services to health care recipients worldwide, defendant allegedly maintains a price list for diagnostic tests that is grossly disproportionate to fair market value rates, as negotiated or mandated by third-party payers such as private or public health care insurers. The suit claims the defendant charges patients from four to 20 times greater than fair market value rates. 

The plaintiffs allege the defendant failed to disclose the CPT codes for the tests it purports to have performed, preventing consumers from being able to identify potential fair market values for the lab testing being billed.

The plaintiffs request a trial by jury and seek to award statutory, exemplary and punitive damages; costs; reasonable attorney's fees; and grant such other relief as the court may deems just and proper. They are represented by Jonathan D. Sasser of Ellis & Winters LLP in Raleigh, North California.

U.S. District Court for the Middle District of North Carolina Greensboro Division case number 1:17-cv-911

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