Three Companies and Executives Agree to Pay $36.4 Million Over Genetic-Testing Billing Allegations
Access DX Laboratory, former CEO Michael Stewart and Florida businessman Harold Shatz reached settlements with the United States over alleged kickbacks and medically unnecessary genetic testing billed to Medicare and Medicaid.
Access DX Laboratory, its former chief executive Michael Stewart and Florida businessman Harold Shatz have agreed to pay a combined $36.4 million to resolve allegations that they used kickbacks and billed Medicare and Medicaid for medically unnecessary genetic testing, the U.S. Department of Justice announced July 30, 2026.
The settlements resolve claims brought under the federal False Claims Act. The case involved allegations that improper payments were connected to genetic testing and that testing considered medically unnecessary was submitted for payment through the two federal health programs.
The agreement brings the government’s claims to a resolution without a court verdict. The announcement identifies the conduct as allegations against the named people and company; it does not establish liability through a trial.
What the settlement covers
Access DX Laboratory entered a settlement with the United States along with Stewart, who was the company’s former chief executive, and Shatz, a Florida businessman. Together, the parties agreed to pay $36.4 million.
The allegations addressed two connected issues: kickbacks tied to genetic testing and claims for testing that the government alleged was not medically necessary. The billing at issue involved Medicare and Medicaid, meaning the alleged conduct concerned claims submitted to federal health programs rather than only private insurers.
Under the settlement, the $36.4 million is to resolve the government’s claims. The public announcement does not identify how the total is divided among Access DX Laboratory, Stewart and Shatz.
Why the case matters
False Claims Act cases involving federal health programs can affect public spending because claims submitted to Medicare and Medicaid draw on government-funded coverage. In this matter, the government alleged that improper financial arrangements and medically unnecessary testing were connected to bills sent to those programs.
The settlement therefore resolves more than a dispute over a private payment. It addresses allegations about how genetic-testing services were promoted, ordered or billed when federal health-program funds were involved. The agreed amount is $36.4 million, but the announcement does not provide an itemized account of the alleged billing or a party-by-party payment schedule.
Genetic testing can involve complex medical and billing decisions. The allegations in this case concern specific claims and alleged kickbacks connected to testing. They should not be read as a finding that all genetic testing billed by Access DX Laboratory was medically unnecessary.
What happens next
The announced settlements resolve the False Claims Act allegations against the three named parties. No trial verdict is described in the announcement, and the settlement itself is the final development identified in the matter.
The agreement also does not, by itself, establish whether any party admitted liability beyond the settlement terms. The government’s claims have been resolved through the parties’ agreement to pay the combined amount.
For Medicare and Medicaid, the case underscores the financial stakes when federal health-program billing is alleged to involve kickbacks or services that were not medically necessary. For patients and providers, the announcement’s central point is narrower: the government reached a $36.4 million settlement with Access DX Laboratory, Stewart and Shatz over the specific allegations involving genetic testing.
Sources
- Press Releases, U.S. Department of Justice
