Many Americans may be able to get money back from a COVID-19 testing company called GS Labs after the company agreed to a $4.87 million settlement, according to court records. The settlement comes after a lawsuit filed by 18 states accused GS Labs of overcharging customers for COVID tests and using unfair business practices, according to state investigators.
GS Labs agreed to pay $4.87 million to settle the claims but denied wrongdoing. People living in Alabama, Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Massachusetts, Minnesota, Missouri, New Jersey, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, and Washington may qualify for payment from the settlement, according to the settlement terms cited by The Sun.
GS Labs overcharging claims
Investigators looked into GS Labs’ testing operations across the country between 2020 and 2022. Investigators alleged that GS Labs charged much higher prices than normal for COVID tests.The investigation also claimed the company charged administrative fees that customers were not expecting, according to court documents.
Investigators further alleged that GS Labs often failed to provide test results within the promised three-day timeframe. According to investigators, some COVID tests were priced as high as $380 each. Some tests that checked for COVID and other illnesses reportedly cost as much as $1,000. Nearly 30,000 customers allegedly paid far more than normal market prices for their tests.
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Late COVID test results
Those customers are expected to share about $1.8 million from the settlement fund. State investigators also alleged that hundreds of thousands of customers received their test results later than promised.
In some cases, customers reportedly waited a week or longer for results that were advertised as being available within three days. The lawsuit claimed that delayed results caused problems for people who needed test results for travel, family visits, work, or events, according to state officials.
Who can get money
Investigators also accused GS Labs of telling insured patients they would not have extra costs. Despite those assurances, the company allegedly charged administrative fees of up to $49 per test.
About 70,000 customers were affected by those administrative fees. Those customers may share approximately $1.7 million from the settlement. People who believe they are eligible can submit a claim through the GS Labs settlement website.
Minnesota Attorney General Keith Ellison said in the report by The Sun, that he had “no patience” for companies that allegedly profited from the pandemic by overcharging consumers. Ellison said many people depended on fast COVID test results for travel, family visits, and events, and delays created serious problems. He said the settlement holds GS Labs accountable for allegedly overcharging customers and misrepresenting its services.
GS Labs responds
GS Labs was once a major COVID testing provider and handled nearly one-third of testing in some states during the pandemic. The company has since permanently shut down. In a statement, GS Labs said it tested more than 1.4 million Americans and identified about 200,000 positive COVID cases, as noted by The Sun.
GS Labs said it controlled between 20% and 30% of the rapid testing market in states such as Minnesota and Washington at its peak. The company said the settlement does not mean it admits the allegations are true. GS Labs said it agreed to settle the case only to end a years-long investigation and legal dispute.
Therefore, eligible customers in 18 states may now be able to claim money back if they were overcharged, charged unexpected fees, or received COVID test results later than promised.