Massachusetts Settles Whistleblower Case for $20 Million Over Urine Drug Tests

Massachusetts settled a major whistleblower case against Calloway Labs today for $20 million resolving assertions that the drug company gave unnecessary drug tests. The company allegedly engaged in a kickback scheme involving two straw companies which funneled money to employees at a medical office and numerous sober houses to illegally obtain urine drug screening business paid for by MassHealth, the Massachusetts Medicaid Program. The Company billed MassHealth falsely for urine screening services that were not ordered by a doctor or authorized by prescribers for a medically necessayr purpose as is required.