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A prominent U.S. provider of rapid COVID-19 testing is set to be hit hard in the pocket, with GS Labs being found culpable of overcharging patients for tests during the pandemic. It seems like an age ago that the world effectively ground to a halt and we were holed up in our homes.
Despite plenty of misinformation and conspiracy theories, it's important to remember the real-world consequences of COVID-19 and what it did to the health industry, with the death toll sitting at 7,115,214. Even though you might think COVID-19 is completely over, there have been 34 deaths in the past seven days linked to it.
As reported by The Independent, a lawsuit affecting GS Labs found it guilty of inflating the price of diagnostic kits during the peak of the pandemic between 2020 and 2022. GS Labs is said to have charged up to $380 per test, with prices soaring to $1,000 for tests against multiple respiratory illnesses.
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More than this, the rapid testing wasn't as rapid as promised, as GS Labs often delivered results a day after its promised three-day turnaround. Sometimes, the company was up to a week behind schedule.
Finally, customers were told they'd face no other expenses but were surprised by later administrative fees of up to $49 per test.
Additionally, the company told patients they would face no out-of-pocket expenses, but later applied administrative fees of up to $49 per test.
GS Labs was lambasted in a public statement from Minnesota Attorney General Keith Ellison, who said: "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."
Up to 70,000 people were affected, and patients in the following states could be entitled to part of the settlement: Alabama, Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Massachusetts, Minnesota, Missouri, New Jersey, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, and Washington.
In a statement first reported by First Alert 6, GS Labs said: "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."
Reiterating it remains proud of its 3,000 employees, GS Labs claims many of them were U.S. military veterans or those who'd been displaced by pandemic shutdowns.
Those who think they're affected are encouraged to apply via a specific GS Labs claim site.
In terms of the settlement, the $4.87 million is broken down as $3.6 million in restitution to patients. This includes $1.8 million for cash-paying patients being overcharged for tests, $1.75 million for those who were charged administrative fees, and $33,692 for cash-paying patients who didn’t get their results within the promised three days.
GS Labs handled up to 30% of the rapid testing market in states including Minnesota and Washington, but in 2026, it's now permanently closed.
