MD Labs Prevails Again

MD Labs Victorious as First Circuit Affirms Dismissal of Qui Tam Lawsuit

Appellate Court Decision Upholds Prior Ruling, Vindicating MD Labs Against Claims Filed by a Professional Whistleblower

RENO, NV – December 3, 2025 – MD Labs, and its co-founders Matthew Rutledge and Denis Grizelj, today announced that the United States Court of Appeals for the First Circuit affirmed the dismissal of a qui tam False Claims Act (FCA) lawsuit filed by relator OMNI Healthcare Inc. This decisive appellate ruling upholds the prior dismissal by the District Court.

The lawsuit, styled United States, ex rel. OMNI Healthcare Inc. v. MD Labs, Case No. 25-1110, alleged various practices related to infectious disease testing. In affirming the dismissal, the Court of Appeals thoroughly reviewed the claims and ultimately concluded, "Our diagnosis is simple: we affirm (the dismissal of the case)."

“We are extremely gratified that the First Circuit has affirmed the dismissal of this burdensome and baseless lawsuit,” said Matthew Rutledge, President of MD Labs. “We are happy to now put this matter, which has spanned multiple years, behind us. Our primary focus has always been on delivering high-quality, cutting edge, medically necessary diagnostic services, and this ruling confirms our commitment to compliant, ethical operations.”

MD Labs specifically criticized the use of the False Claims Act’s qui tam provisions by parties with questionable motives.

“While we firmly support genuine whistleblowers who expose true fraud, we believe this was a case of a professional relator attempting to weaponize the FCA for personal financial gain.  These kinds of opportunistic, litigation-for-profit schemes unnecessarily consume valuable judicial and corporate resources, forcing clinical laboratories to divert time and capital away from innovation and patient care to defend their reputations. MD Labs will continue to vigorously defend its integrity, and by extension, the integrity of the entire clinical laboratory industry, against these self-serving attacks.”

MD Labs is refocusing all attention and resources on expanding its diagnostic capabilities in chemistry, toxicology, pharmacogenetics and other added services while furthering its mission to provide fast, accurate, and actionable results to healthcare providers and the patients they serve.

About MD Labs

MD Labs is a CLIA-certified and CAP-accredited clinical laboratory providing advanced diagnostic testing services, including molecular and toxicology testing, to healthcare providers nationwide. Headquartered in Reno, Nevada, MD Labs is committed to compliance, accuracy, and improving patient outcomes through high-quality laboratory medicine.