Attorney General Rayfield Secures Settlement with GS Labs Regarding Overpriced and Delayed COVID-19 Tests

Attorney General Dan Rayfield today announced a $4.87 million multistate settlement with GS Labs that resolves claims that the testing company overcharged patients, unlawfully charged administrative fees, and failed to deliver timely COVID-19 test results.

"When Oregonians needed COVID tests, they deserved straight answers, accurate prices, honest timelines, and results when they were promised," said Attorney General Rayfield. "GS Labs failed on all counts. This settlement puts money back in the pockets of people who were taken advantage of during one of the most stressful periods of their lives."

The bipartisan multistate coalition investigated several problems with GS Labs's nationwide testing practices from 2020 through 2022, including that:

• GS Labs intentionally advertised inflated "cash prices" for COVID-19 tests, sometimes as high as $380 per test or nearly $1,000 for multi-panel tests, that were used to justify overcharging patients with insurance coverage. And while GS Labs offered a "discount" from these "cash prices" to actual cash-paying patients, almost 30,000 patients still paid much more than market rate for their COVID-19 tests.
• For hundreds of thousands of patients, GS Labs guaranteed test results within three days and failed to deliver on its promise, sometimes taking a week or longer to get test results to patients.
• Despite advertising that patients with insurance would have no out-of-pocket costs, the company charged administrative fees as high as $49 per test to about 70,000 patients.

Under the terms of today's settlement, GS Labs will pay $3,628,718 in restitution to patients, including $1,843,375 for cash-paying patients that were overcharged for tests, $1,749,568 for patients that were charged administrative fees, and $33,692 for cash-paying patients that did not receive test results within three days. Oregonians who were harmed by GS Labs's testing practices will receive $142, 957 in restitution through the settlement.

The settlement creates an online restitution mechanism that will be funded and administered by GS Labs, with oversight by the multistate coalition. Eligible consumers include out-of-pocket paying consumers who paid in excess of the market rate for testing, consumers who paid for test results that were not delivered within the advertised turn-around time, and consumers who paid administrative fees to GS Labs.

To determine one's eligibility and, if applicable, to receive a restitution payment, consumers must complete a brief verification process, which is available at www.gslabstesting.com(Opens in a new tab/window). All information used to verify a consumer's identity will solely be used for that purpose and will not be saved, stored or shared. The refund process involves digital security that will ensure the safety of any submitted information. Consumers are encouraged to complete this process as soon as possible, as restitution payments will be processed on a rolling basis. GS Labs will be contacting affected consumers via email to share more information about the restitution process.

GS Labs has represented to the States that it no longer offers testing services and is not operational. As part of the settlement, if GS Labs decides to resume testing services, the company must make several changes to its advertising and sales practices, including:

• GS Labs must disclose in its marketing materials the maximum time for it to disclose test results.
• GS Labs will report testing results within the advertised time period and, if it cannot, it must notify patients of the delay and offer a full refund.
• GS Labs must comply with local, state, and federal requirements to promptly deliver COVID-19 test results and provide notification of any delays.
• GS Labs will cease charging cash-paying patients fees in excess of market rates, charging patients for late test results, and charging administrative fees in violation of state and federal laws.
• GS Labs must disclose in its marketing materials the actual cash price that will be charged to patients, including clearly disclosing any applicable discounts.
• GS Labs cannot charge administrative fees for COVID-19 testing services.
• GS Labs cannot unjustifiably increase the cost of its testing services during a declared emergency.

In addition to Attorney General Rayfield, joining this settlement are the attorneys general of Alabama, Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Massachusetts, Minnesota, Missouri, Nebraska, New Jersey, North Dakota, Ohio, Pennsylvania, and South Dakota, and Washington.