NeoGenomics, Inc. said in a filing with the SEC that it has finalized a civil settlement with the Department of Justice on behalf of the Office of Inspector General of the U.S. Department of Health and Human Services, resolving an investigation into consulting services the company provided to certain health care providers for laboratory testing.
The investigation concerned services provided as part of the company's Laboratory Collaboration Initiative program, according to the filing. NeoGenomics said it self-disclosed the matter to the OIG in November 2021.
Under the settlement, NeoGenomics has agreed to pay $9,813,260 plus interest at a rate of 4.250% per annum from January 16, 2026 to the United States to resolve the matter, the filing said.
The company noted in the filing that it had previously disclosed in its SEC filings that it accrued a reserve of $11.2 million to cover potential damages and liabilities associated with the investigation.
The filing stated that the DOJ acknowledged in the settlement agreement that NeoGenomics cooperated with the government's investigation into the matter.
CEO Tony Zook was quoted in the filing saying, "We are pleased to resolve this legacy matter. The resolution of this voluntary disclosure will allow the Company to continue moving forward with its vision and commitment to advancing personalized cancer care."
According to the filing, the settlement agreement is neither an admission of liability by the company nor a concession by the United States that its claims are not well founded.
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