NeoGenomics Pays $9.8M to Resolve Potential False Claims Act Violations Related to Alleged Lab Testing Kickbacks

Posted July 29, 2026

By the Constantine Cannon Whistleblower Team

On July 20, Florida-based NeoGenomics Laboratories Inc. (NeoGenomics) agreed to pay $9,813,260 to settle allegations it violated the False Claims Act by offering two types of illegal kickbacks. According to the press release announcing the settlement, NeoGenomics offered below-market consulting services to healthcare providers in exchange for patient referrals and also paid independent consultants referral-based compensation to identify potential referral sources.[1]

What Did the Alleged Violations Entail?

Under its Laboratory Clinical Initiative program, NeoGenomics allegedly provided laboratory consulting services to 28 healthcare providers who wanted to establish certain in-house laboratory diagnostic capabilities. NeoGenomics allegedly violated the Anti-Kickback Statute by providing some of those services for less than fair market value to induce referrals to NeoGenomics. The government also alleged this financial relationship and the resulting claims for NeoGenomics services violated the Stark Law.

Additionally, the government claimed NeoGenomics also violated the Anti-Kickback Statute by paying independent consultants to identify providers who would refer patients to NeoGenomics for laboratory services. The consultants’ payments varied with the volume or value of the referrals those providers made to NeoGenomics.[2]

More About the Case

Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division commented: “Federal law prohibits paying remuneration to induce referrals of federal health care services, including by offering services at below fair market value. We encourage companies to self-disclose improper remuneration and cooperate with our investigations in order to mitigate the consequences of prior conduct.”[3]

The government gave NeoGenomics credit because it self-disclosed the conduct, took remedial actions, and fully cooperated with the investigation.

Were Whistleblowers Involved In This Case?

Many False Claims Act cases are initiated by whistleblowers under the qui tam (or whistleblower provisions) of the statute. This allows private parties to bring lawsuits on behalf of the government against those that defraud the government. Successful whistleblowers may receive up to 30% of the government’s recovery as a reward.

While NeoGenomics self-disclosed its conduct to the government, kickback cases like this one more commonly originate from whistleblowers. Kickback schemes and other healthcare fraud can often carry on unnoticed if whistleblower insiders do not recognize it and report it.

According to Constantine Cannon partner Marlene Koury: “Offering kickbacks like below-market services in exchange for referrals compromises medical judgment and violates the law. Though self-disclosures sometimes happen, the government relies heavily on whistleblowers to bring violations of the Anti-Kickback Statute and Stark Law to light.”

Our Firm Represents False Claims Act Whistleblowers Reporting Kickback Violations

Constantine Cannon has significant experience representing whistleblowers alleging illegal kickbacks under the False Claims Act. Most recently, we represented the whistleblower who helped DOJ secure a $34 million settlement against dialysis giant DaVita for allegedly paying physicians for referrals to DaVita’s dialysis centers. The whistleblower received roughly 18.5% of the government’s recovery as a reward.

If you think you may have a case or would like to learn what it means to be a whistleblower, please contact us. We will connect you with an experienced member of the Constantine Cannon whistleblower team for a free and confidential consultation.