Global Intel Hub (Zero Hedge Exclusive!) -- Traders know very well that markets are rigged and publicly traded companies often manipulate products and numbers in such a way as to present a perceptive reality that doesn't exactly reflect actual reality. Well, some companies like LabCorp (LH) have taken this to a new fangled art form. In what appears to be a massive medical fraud, LabCorp provided 'positive' paternity tests to any mother who named a male in a document, court papers say. We have already covered this issue, however it is gaining little traction in the mainstream media (no surprise there, as they are paid to cover up fraud). We are waiting for the 'fact checkers' to come explain us the Sky is in fact green, what we are seeing is an atmospheric condition caused by gas deposits in Alaska [ /sarc ]. From our article:
(Global Intel Hub) -- Charlotte, NC - 7/16/2021 -- In what may be one of the biggest testing frauds of the decade, LabCorp (LH) has been found to be offering fake paternity tests that will name any father written in the application form as the paternal father. The first case has been filed in California, but will likely lead to many others. In a world of fake news, where 99% of information proliferated in 'mass media' is disinformation, advertising, or psychological operations - it's not surprising that fake tests and not in the headlines. However, when it breaks that LabCorp has been using fake / false paternity tests for family court cases (divorce, child custody and child support), families are going to be ripped apart.
This is not LabCorp's first such scheme, they appear to have an impeccable track record of scams and fraud. Only recently, whistleblowers opened up a scam whereby doctors were getting illegal kickbacks:
Laboratory Corp. of America Holdings must face a whistleblower lawsuit alleging the company participated in a scheme to bill Medicare for blood drawing services tainted by kickbacks to doctors, a South Carolina federal court ruled. Whistleblowers Scarlett Lutz and Kayla Webster allege LabCorp provided blood drawing services to doctors who were receiving illegal kickbacks from third-party laboratories Health Diagnostic Laboratory and Singulex Inc. in exchange for the blood test service referrals. A reasonable fact finder could conclude that it was foreseeable to LabCorp that the two labs would present claims for Medicare reimbursement for thee tests, Judge Richard M. Gergel ...
Global Intel Hub has reached out to LabCorp executives for a comment, no response. The question traders should be asking is how big is this fraud from an economic perspective. We don't have access to precise data to calculate, but considering how big their paternity testing business is, it could be substantial.
Paternity tests are used in court cases which typically result in, you guessed it - forcing the named 'dad' to have to pay child support. If you don't pay, you can go to JAIL - making this a modern form of Corporate Slavery.
Holding that LabCorp had a duty to perform accurate testing, the court reversed a grant of summary judgment for LabCorp and stated: The importance of reliable and accurate DNA test results cannot be overstated. This type of forensic evidence is becoming part of our jurisprudence, and this trend is not likely to end. Much stands in the balance of the lives of those relying on such test results to protect their legal rights in a court of law. Inaccurate results could deal a devastating blow to those who otherwise have no ability to prove their cases on their own. Without recourse against a negligent defendant, a plaintiff has no remedy. Berman stands in that position in her relationship with LabCorp. Inaccurate results proved fatal to her case in her DHS proceeding. She was forced to pursue further legal action at her own expense. Her risk was foreseeable, and LabCorp owed her a duty to prevent that risk of harm. Id. ¶ 18.
Read more at: https://www.nlrg.com/family-law-legal-research/bid/77840/TORTS-Negligence-Liability-of-DNA-Testing-Laboratory
Recently had a friend go through a motherless paternity test and it came back 99.9% as being included as the child’s father. However he has doubts about the test and how it they came about the results. When contacting the lab they refused to give him the type of test performed, chain of custody,... -Lab Corp Test Review
We can go on, but the research and public info speaks for itself, combined with a track record of fraud and deception - how could it be any worse?
What's the trade here? Short LH, or sell calls - up to you. The stock price is not sustainable at these nose bleed levels when you factor in the liability.
Trade it @ LevelX