Dallas lab to pay millions over unnecessary respiratory tests for seniors

A Dallas-based clinical laboratory and its investors will pay $24 million to resolve allegations that performed unnecessary tests on seniors who received COVID-19 tests.Magnolia Diagnostics, and its owners, John Bains and Kelly Bains, will pay $19.2 million to resolve allegations that they violated the False Claims Act by billing Medicare for unnecessary respiratory tests performed on seniors who were getting COVID-19 tests.Investors in the laboratory agreed to pay $4.8 million to resolve common law claims for unjust enrichment and payment by mistake and claims under the Federal Debt Collection Procedures Act."We will pursue not only companies that submit false claims and the owners who direct the misconduct, but also investors who receive and retain its financial benefits — especially when vulnerable Americans are exploited for profit," Assistant Attorney General Brett Shumate said.The federal government accused John Bains and Kelly Bains of developing a scheme to require respiratory