Penalty Amount
$1,729,977
Connecticut Attorney General announced a $1.73 million settlement with Enzo Clinical Labs for overbilling the state Medicaid program. The lab billed Medicaid full prices while offering discounted rates to other payers, violating the state False Claims Act. The settlement resolves both an audit repayment and claims from a whistleblower investigation.
Enzo Clinical Labs must pay $1,729,977 to Connecticut to resolve allegations of Medicaid overbilling. The payment covers both the audit repayment of $981,951 and additional claims from a whistleblower investigation, with $238,369 going to the relator.
In-house legal teams should review all agreements where the entity provides services to government healthcare programs, particularly vendor contracts with state Medicaid agencies and customer agreements with private insurers. Key clauses to examine include pricing schedules (to verify consistent rate definitions), discount terms (to ensure no discriminatory pricing between Medicaid and other payers), billing and claims submission certifications (for compliance with program rules), audit rights and cooperation provisions (given the whistleblower-triggered investigation), representations and warranties regarding adherence to False Claims Acts, and indemnification or penalty allocation clauses. Potential changes may involve adding explicit rate parity requirements across all payer types, strengthening compliance certifications with specific Medicaid regulations, enhancing audit response procedures, and incorporating clearer termination rights for billing violations.
Entity
Enzo Biochem, Inc. and Enzo Clinical Labs, Inc.
Also known as: Enzo Biochem
Industry
HealthcareConnecticut Attorney General William Tong joined a coalition of states and local governments in filing suit against NHTSA over its rule weakening fuel economy standards for new passenger cars and light trucks. The lawsuit alleges the rule violates the agency’s statutory mandate and the Administrative Procedure Act; no penalty or final remedy is reported.
Connecticut Attorney General William Tong joined a multistate coalition suing the EPA over its repeal of greenhouse gas pollution limits for power plants and separately filed a notice of intent to sue over regulation of existing gas plants. The coalition asks the court to overturn the repeal and restore the protections; the release reports no monetary penalty or final order.
$400.0M
Connecticut Attorney General William Tong announced a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. resolving allegations that the generic drug manufacturers conspired to inflate prices, limit competition, and restrain trade. The settlement includes consumer restitution and injunctive reforms; court approval was being sought.
Connecticut Attorney General William Tong joined a coalition of 21 attorneys general in submitting a comment letter opposing a DHS rule that allows certain affirmative asylum applications to be referred to removal proceedings without an asylum officer interview. The coalition argues the rule violates federal law and harms asylum seekers, including unaccompanied children; this was a policy opposition letter, not a privacy enforcement action.
Connecticut and Massachusetts co-led a coalition protest urging FERC to reject the proposed NextEra Energy-Dominion Energy merger. The coalition argued that the merger could increase market power and threaten energy affordability, reliability, and competition; the release does not report a final enforcement decision or penalty.
Connecticut officials warned residents about potential home improvement scams before an approaching nor’easter, including unlicensed contractors, high-pressure sales tactics, and demands for full payment upfront. The release provides consumer guidance on checking contractors and contract requirements; it does not announce an enforcement action or penalty against a named entity.