Penalty Amount
$4,870,000
Colorado Attorney General Phil Weiser and a bipartisan coalition of 18 attorneys general announced a $4.87 million settlement with GS Labs, a former COVID-19 rapid testing business. The company was found to have violated the Colorado Consumer Protection Act by falsely advertising test results with no wait times, same day appointments, and no out-of-pocket expenses, while overcharging consumers and insurance providers.
GS Labs will pay over $3.6 million in restitution to consumers and $1.25 million to the multistate group (Colorado receiving $23,601 for legal fees). If GS Labs resumes COVID-19 testing, they are prohibited from charging administrative fees, pricing above market rate, or charging consumers for late results.
In-house legal teams should review vendor agreements with healthcare service providers, particularly those involving consumer-facing pricing and advertising. Key clauses to examine include: pricing representations (ensuring advertised prices match actual charges), fee disclosure provisions (especially any administrative or hidden fees), performance guarantees (e.g., turnaround times for services), and indemnification for false advertising claims. Customer-facing terms of service and consent forms should also be audited to ensure clear disclosure of all costs and limitations. Additionally, contracts with insurance providers should be checked for compliance with market rate pricing and billing practices.
Entity
GS Labs
Industry
HealthcareOfficial Press Release
https://coag.gov/press-releases/attorney-general-weiser-announces-settlement-with-former-covid-19-test-distributor-after-company-used-false-advertising-overcharged-coloradans/
GS Labs Updated CO AOD Final v3
https://coag.gov/app/uploads/2026/06/GS-Labs_Updated-CO-AOD-Final-v3.pdf
Colorado Attorney General Enforcement Page
https://coag.gov/
"GS Labs"
"$4.87 million settlement"
"Colorado Consumer Protection Act"
"false advertising and overcharged Coloradans"
"GS Labs will pay over $3.6 million in restitution"
"bipartisan coalition of 18 attorneys general"
Attorney General Ellison announced a $4.87 million multistate settlement with GS Labs for overcharging patients, charging unlawful administrative fees, and failing to deliver timely COVID-19 test results. The settlement includes $3.63 million in restitution to affected consumers and $1.25 million to the multistate group, along with injunctive relief if GS Labs resumes operations.
Colorado joined a coalition of states and local governments in suing the National Highway Traffic Safety Administration over its rule weakening fuel economy standards for new passenger cars and light trucks. The coalition alleges the rule violates federal law; the press release does not report a penalty or a court ruling.
Colorado Attorney General Phil Weiser joined a multistate and local coalition challenging the EPA’s repeal of greenhouse gas limits for many coal- and gas-fired power plants. The coalition seeks to have the repeal struck down and the protections restored, and separately notified the EPA of its intent to sue over regulation of emissions from existing gas plants; no penalty or final court remedy is reported.
$469.0M
Colorado joined a 43-state-and-territory settlement resolving allegations that Sandoz and Fougera participated in a long-running conspiracy to inflate generic drug prices, reduce competition, and restrain trade. The companies agreed to pay approximately $469 million and implement reforms; the states are seeking court approval.
$35.0M
Colorado, the FTC, and a coalition of state attorneys general reached a settlement with Corteva over allegations that its post-patent loyalty program restricted distributors from selling competing generic pesticides. Corteva must end the challenged conduct and pay the states $35 million for fees and costs; the agreement is in effect for 10 years.
$2.3M
Colorado and a bipartisan coalition of attorneys general reached a $2,287,455 settlement with Laboratory Corporation of America over the 2019 data breach at its debt collector, American Medical Collection Agency. The settlement requires stronger vendor risk management and information security practices, with particular requirements for medical debt collectors.