A COVID-19 testing firm has agreed to a $4.87 million settlement following a lawsuit from 18 states alleging the company overpriced tests and deceived consumers during the pandemic.
The agreement resolves claims that GS Labs exploited the public health crisis by overcharging patients, imposing hidden fees and failing to deliver timely results.
Hundreds of thousands of Americans across 18 states — Alabama, Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Massachusetts, Minnesota, Missouri, Nebraska, New Jersey, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota and Washington — may be eligible for refunds.
An investigation into the company’s nationwide testing procedures between 2020 and 2022 found that GS Labs inflated the price of its diagnostic kits. According to court documents, the firm charged up to $380 per individual COVID-19 test and as much as $1,000 for panels testing for multiple respiratory illnesses.
Investigators found that nearly 30,000 patients paid significantly above market value for their tests. Those consumers are now expected to receive a share of $1.8 million from the settlement.
The lawsuit also alleged that GS Labs promised rapid turnaround times but regularly delivered results days late, occasionally taking a week or longer instead of the advertised three days.
Additionally, the company told insured patients they would face no out-of-pocket expenses, but later applied administrative fees of up to $49 per test. Court records indicate this practice affected roughly 70,000 customers, who are now eligible for a portion of $1.7 million in restitution.
Eligible consumers can submit a claim for a refund through the GS Labs website.
“I have no patience for pandemic profiteers like GS Labs that deliberately overcharged for COVID-19 tests and deceived Minnesotans about the out-of-pocket costs they would have to pay,” Minnesota Attorney General Keith Ellison said in a public statement.
Ellison added that the delays caused significant disruption for residents who relied on quick results to travel or visit family, and stated that the settlement holds the firm accountable for misrepresenting its services.
GS Labs, which once handled between 20 and 30 percent of the rapid testing market in states like Minnesota and Washington, is now permanently closed.
In a statement reported by First Alert 6, GS Labs stated that it was founded to assist during the pandemic and ultimately tested more than 1.4 million Americans.
“The settlement expressly denies the allegations against GS Labs, and we agreed to resolve the matter to bring a years-long investigation to a close — not because we believe the claims have merit,” the company said.
