COVID testing company accused of storing samples in trash bags sued by three states

The state of Oregon sued an Illinois-based company over accusations that it stored COVID-19 test samples improperly, potentially leading to botched test results.

According to the lawsuit, the company, the Center for Covid Control, and a laboratory it partnered with, Doctors Clinical Laboratory, said they could provide accurate results to PCR tests within 24 to 72 hours. But as demand for testing grew, the two businesses “lacked the capacity to properly store and timely process the thousands of test specimens they were receiving each day,” documents said.

The Centers for Covid Control and Doctors Clinical Laboratory could not be reached for comment by McClatchy News on Friday, April 8.

According to the lawsuit, the couple that owned the Center for Covid Control, Aleya Siyaj and Akbar Ali Syed, had no prior experience with lab work or medicine, but previously ran an ax-throwing lounge and a photography studio.

The owners also misused the funds they received, the lawsuit said. The state accused the couple of using money from the government to buy a $1.36 million mansion and several luxury cars, including two Lamborghinis, a Tesla and a Ferrari, according to court documents.

Meanwhile, the company was providing questionable test results to Oregonians, the lawsuit says. According to court documents, the state believes that the company stored specimens improperly, did not train employees to handle test specimens properly, and did not conduct tests in alignment with manufacturers’ instructions.

The company also returned test results later than advertised, the lawsuit said.

“They advertised quick and accurate test results, and people put their faith in them — during a time when testing for COVID-19 was in high demand,” Oregon Attorney General Ellen Rosenblum said in a statement. “As a result, Oregonians made crucial decisions — about returning to work or school, travel, and visiting family and friends — in reliance on shoddy tests.”

Some of the improper storage techniques included keeping specimens in unrefrigerated bins, shipping them without refrigeration or dry ice, and storing them in outdoor bins, the lawsuit said. The labs also failed to notify the Oregon Health Authority of COVID-19 test results, violating state law, the lawsuit said.

In November 2021, regulators with the Department of Health and Human Services and Centers for Medicare and Medicaid Services determined that the lab was operating at “immediate jeopardy,” the highest level of noncompliance in which a provider’s actions have caused, or are likely to cause, “serious injury, harm, impairment, or death to a patient,” the lawsuit said.

The company announced an extension of its “pause on operations” on Jan. 20, “following investigations by the Oregon Department of Justice, the FBI, Illinois public health authorities, and other state regulators,” the lawsuit said.

The Oregon Department of Justice is seeking penalties and restitution for customers who took the tests. The lawsuit also asks that the company and the laboratory be banned permanently from providing COVID-19 testing in Oregon, the attorney general’s office said.

“Since October 2021 the Oregon Department of Justice has received 30 complaints about the company,” the attorney general’s statement said. “It opened a civil investigation in January.”

Oregon isn’t the only state to sue the company and laboratory — Washington and Minnesota also filed lawsuits, Oregon Public Broadcasting reported.

This story was originally published April 8, 2022 at 1:09 PM with the headline "COVID testing company accused of storing samples in trash bags sued by three states."