Whistleblower Law Collaborative Clients Part of $6 Million Genetic Testing Fraud False Claims Act Settlement Involving Genexe, Immerge, and Two Individual Owners

BOSTON, April 23, 2025 /PRNewswire/ -- Whistleblower Law Collaborative LLC is pleased to announce that the United States has settled a False Claims Act case alleging genetic testing fraud brought by two of its clients against Genexe, LLC d/b/a Genexe Health, Immerge, Inc., the parent company of Genexe, and two individual owners, Jason Green and Jason Gross.

Under the terms of the government settlement announced today, these defendants collectively will pay $6 million to resolve allegations of genetic testing fraud brought in multiple FCA qui tam cases filed by several whistleblowers, including clients of WLC. The whistleblowers collectively will receive an award of $1.3 million from the settlement.

Government's Allegations of Genetic Testing Fraud

Genetic tests are medical laboratory tests designed to identify specific inherited mutations in a patient's genes. Genetic mutations or variations may affect a patient's risk of developing certain diseases or the patient's response to medications. Medicare does not cover clinical laboratory tests that are not medically necessary or that are tainted by kickbacks.

After investigating the claims raised in the relators' FCA qui tam complaints, the United States alleged that during 2018 and 2019, Genexe, Immerge, Green, and Gross assisted with and caused to be submitted false claims to Medicare for CGx and PGx tests that were not medically necessary and that were procured through kickbacks offered and paid to a network of independent contractors (IBOs), medical laboratories, medical providers, and telemedicine healthcare providers.

Individual Owners and Officers Held Accountable 

This settlement is particularly notable because Jason Green and Jason Gross, two individual officers and owners of the companies, were held accountable by the United States and will collectively pay the settlement amount along with the companies. Green and Gross served, respectively, as the Chief Executive Officer and Chief Operating Officer of Genexe and Immerge, and they controlled and had ownership interests in the companies.

Government Emphasizes Importance of Ending Genetic Testing Fraud

In the press release announcing the settlement, government officials emphasized the importance of identifying and ending genetic testing fraud scams.

"Genetic testing fraud preys on the fears of patients, and it wastes taxpayer dollars by spending limited funds on medically unnecessary or nonexistent tests. This settlement shows we will work with our law enforcement partners to investigate fraud, waste, and abuse in federal healthcare programs and will use every tool available to recover improperly paid taxpayer funds."

United States Attorney David Metcalf

"Medical professionals should only order testing which would benefit individual patient care, not for personal gain."

Maureen Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG)

WLC Applauds Client Contributions and Government Efforts

Whistleblower Law Collaborative commends the outstanding efforts of their clients and the government prosecutors.

"It was a privilege to represent two clients who were willing to come forward to alert the government to a national fraud scheme which preyed on elderly victims and cost taxpayers millions of dollars. The settlement announced today is a testament to the skill, resolve, and stamina of an outstanding team of government attorneys and investigators who put an end to that scheme and held those who profited accountable for their actions. " 

Bruce C. Judge, Partner, Whistleblower Law Collaborative

This is the third settlement of a genetic testing fraud FCA case brought by a client of WLC. We began sounding the alarm about genetic testing scams in 2018. Without the courage of whistleblowers, scams like this would go undetected.

Whistleblower Law Collaborative devotes its practice entirely to representing whistleblowers. For more information, contact the firm at 617.366.2800 or email Bruce Judge at [email protected] or Linda Severin at [email protected].

SOURCE Whistleblower Law Collaborative LLC