On August 16, 2019, the U.S. District Court for the Middle District of North Carolina denied LabCorp’s motion to dismiss the amended complaint. The amended complaint alleges that LabCorp unlawfully billed individuals at a rate far in excess of fair market value when laboratory tests were not covered by public or private healthcare insurers, and alleges claims under numerous state consumer protection laws, as well as for breach of implied contract and for declaratory relief. LabCorp filed a motion to dismiss the amended complaint in September 2018, arguing that it had no duty to disclose pricing in advance of performing services and that all patients implicitly agree to pay its list prices if a public or private healthcare insurer is not responsible for the cost of the services.
The Court sustained 10 out of 11 claims brought by the plaintiffs over LabCorp’s objections. In particular, the Court declined to dismiss the plaintiffs’ claim for declaratory relief that, if awarded, would limit LabCorp to collecting only the reasonable value of its services, not its list prices. The Court also sustained the plaintiffs’ state consumer protection claims, which allege that LabCorp’s excessive charges and threatening collection letters constitute unfair business practices.
The case is proceeding to discovery and an eventual class certification motion.
Phone: Robert C. Finkel - (212) 451-9620
Phone: Matthew Insley-Pruitt - (212) 451-9621
Phone: Timothy D. Brennan - (212) 451-9616
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