Fraud Class Action Filed Against Selah Genomics

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A class action has been filed against Selah Genomics claiming the company fraudulently promised to reimburse the plaintiff for their promotional and sales efforts each time a physician utilized its COBAS HPV testing services even though it knew cheaper options were more viable to patients. Specifically, the defendants claimed that after receiving medical samples, patients’ insurers would then remit payment to Selah Genomics, with a certain percentage of that money then remitted to the plaintiff, JLS Medical, and class members.

The plaintiff says the defendant claimed it would bill all patients as if they were “in-network” regardless insurer specifications. According to the complaint, however, the defendant is actually considered to be “out of network” by “most, if not all, insurance providers,” meaning its lab testing services are far more expensive than similar in-network options. “Because comparable and readily available ‘in-network’ alternatives to Selah Genomics COBAS HPV testing services exist,” the complaint reads, “few, if any, patients would ever allow their specimens to be sent to [the defendant] for testing.” The plaintiff and class member say they were made aware of this problem only after investing “significant money, time, business reputation and good will” to market and sell the defendant’s services.

Therefore, Selah Genomics misrepresented the feasibility of its “in-network” billing policy, with the plaintiff saying they never would have invested significant money in selling the defendant’s services had they known they would not be able to monetize they promotional and sales efforts as promised.