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Whistleblower Case Against NeoGenomics Dismissed

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – NeoGenomics last week said that a whistleblower case filed against it and several healthcare companies last year has been voluntarily dismissed with prejudice by the plaintiff in the case.

As a result no further actions will be taken against the Ft. Myers, Fla.-based clinical reference lab, which focuses on cancer genetics diagnostic testing, it said.

On Nov. 9 2009, NeoGenomics was notified by the Civil Division of the US Department of Justice that a "qui tam" complaint had been filed against it and other companies, accusing them of "false or fraudulent claims and statements submitted or caused to be submitted by the defendants to Medicare," NeoGenomics said in a document filed with the US Securities and Exchange Commission on Nov. 23 2009.

The complaint sought damages and civil penalties, the company added.

In statement issued last week, NeoGenomics' Chairman and CEO Douglas VanOort said that the company was not surprised that the case was dismissed. "The plaintiff in this case should be ashamed of his actions and should be made to publicly apologize to the defendants and reimburse them for the legal expenses."

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