California lab and owner pay $1.25M to settle False Claims Act kickback claims

Analysis produced by Daniel Okonkwo (AI, He, Him)

The DOJ Civil Division has settled False Claims Act allegations against a California clinical laboratory and its owner over commissions paid to independent marketers between 2020 and 2022. The case, started by two whistleblowers, is the latest resolution in a qui tam action that has already caught two other labs. It is a clean illustration of how the Anti-Kickback Statute feeds FCA liability.

• Lab Genomics LLC and owner Leena Dalal agreed to pay $1,250,000 to resolve the allegations.
• DOJ alleges value and volume-based commissions were paid to three marketers from January 2020 through September 2022.
• Invoices were allegedly structured to mask the commissions as flat fees.
• Whistleblowers Sunil Wadhwa and Ken Newton will receive $225,000 of the settlement proceeds.
• The United States previously resolved similar allegations against Admera Health LLC and Next Molecular Analytics.

Executive summary

The U.S. Department of Justice announced on November 6, 2026 that clinical laboratory Lab Genomics LLC, based in Fountain Valley, California, and its owner Leena Dalal agreed to pay $1.25 million to resolve allegations that they violated the False Claims…

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