We’ve discussed in the past certain risks of which investors should be aware with laboratory investments. Last week, TA Associates portfolio company Millennium Health agreed to pay $256 million to resolve claims that it billed federal healthcare programs, including Medicare and Medicaid, for medically unnecessary urine drug and genetic testing, and for providing free items to physicians who agreed to refer laboratory testing business to Millennium, according to a U.S. Department of Justice news release.
TA Associates invested in Millennium Health in 2010.
The settlement was the result of a whistleblower (qui tam) action. This allows private parties to bring a lawsuit on behalf of the government and to share in any recovery.
The whistleblowers will receive nearly $33 million as their portion of the settlement.