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.
Minnesota Attorney General Keith Ellison issued a consumer alert explaining how veterans, their families, and others who believe Trajector Holdings owes them money can file claims in the company’s Chapter 11 bankruptcy. The release announces no privacy violation, enforcement penalty, or remedy against the company.
Minnesota and 39 other attorneys general filed a notice in Character Technologies, Inc.’s bankruptcy proceedings raising concerns about the company’s safety and privacy practices and the sensitive information it holds, including children’s private chatbot conversations. The states seek protections for consumers in any sale or transfer of the business or assets; the filing does not impose a penalty or establish a final remedy.
The Minnesota Attorney General filed an Assurance of Discontinuance requiring Auto Tech Donations, Inc. to dissolve after finding that its solicitations and governance did not comply with state requirements. Its president was banned from forming or serving as an officer or director of nonprofits and must provide restitution to donors whose vehicles he resold for personal benefit.
Minnesota Attorney General Keith Ellison and a coalition of 26 states, counties, and cities filed a lawsuit challenging NHTSA’s rule weakening fuel-economy standards for new cars and light trucks. The coalition alleges the rule violates the Administrative Procedure Act and the Energy Policy and Conservation Act; the press release describes a lawsuit filing, not a monetary penalty or final judgment.
$35.0M
Minnesota, the FTC, and a bipartisan coalition of state attorneys general reached a proposed settlement with Corteva over alleged loyalty programs that restricted pesticide distributors from buying lower-cost generic products. Corteva must end the challenged practices, comply with restrictions for 10 years, and pay $35 million to the state plaintiffs, including $1.25 million to Minnesota.