Westlaw News

Circuit revives Cigna fraud case against medical testing company

* 2nd U.S. Circuit Court of Appeals revives insurer Cigna’s $17 mln claims against six medical testing companies owned by Rennova Health Inc

* Cigna alleged the labs removed incentives for patients to use in-network providers and billed for unnecessary services

* Appeals court said lower court must consider laches when deciding whether Cigna’s claims were time-barred

A federal appeals court has revived a lawsuit by Cigna Corp accusing a Florida-based medical testing company of defrauding the insurer by systematically overbilling more than $17 million for services.

Circuit Judge Richard Sullivan, writing for a unanimous panel of the 2nd U.S. Circuit Court of Appeals on Wednesday, found that a district judge wrongly applied a Connecticut statute of limitations in dismissing Cigna’s case against six testing companies owned by Rennova Health Inc as time-barred.

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