Nearly 30,000 people paid well over the odds for a COVID-19 test, and tens of thousands more were hit with hidden fees. Now, those customers are in line for a share of a $4.87 million settlement after 18 states took on an American testing lab firm.
The settlement brings to a close claims that GS Labs took advantage of the public health crisis by charging patients too much, adding hidden fees, and failing to deliver results on time.
Hundreds of thousands of people across 18 US states could now be entitled to refunds. The states involved are Alabama, Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Massachusetts, Minnesota, Missouri, Nebraska, New Jersey, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota and Washington.
An investigation into the firm’s testing practices between 2020 and 2022 found that GS Labs had inflated the cost of its diagnostic kits. Court documents show the company charged as much as $380 for a single COVID-19 test, and up to $1,000 for panels that tested for several respiratory illnesses at once.
Investigators discovered that nearly 30,000 patients had paid well above the going rate for their tests. These customers are now set to share $1.8 million from the settlement.
The lawsuit also claimed that GS Labs had promised quick turnaround times but often delivered results late, sometimes taking a week or more rather than the three days advertised.
The company was further accused of telling insured patients they would not face any out-of-pocket costs, only to later charge administrative fees of up to $49 per test. Court records show this affected around 70,000 customers, who are now eligible for a share of $1.7 million in restitution.
Those who qualify for a refund can submit a claim through the GS Labs website.
Minnesota Attorney General Keith Ellison said in a statement, “I have no patience for pandemic profiteers like GS Labs that deliberately overcharged for COVID-19 tests and deceived Minnesotans about the out-of-pocket costs they would have to pay.”
Ellison said the delays had caused real disruption for residents who needed fast results to travel or see family, and said the settlement ensured the firm was held accountable for misrepresenting its services.
At its peak, GS Labs handled between 20 and 30 per cent of the rapid testing market in states such as Minnesota and Washington. The company has now shut down permanently.
