On June 10, 2026, a coalition of 18 state attorneys general entered into a $4.88 million settlement with GS Labs, LLC, resolving claims that the now-defunct testing company overcharged consumers for COVID-19 tests and engaged in deceptive advertising practices during the pandemic. The settlement requires GS Labs to pay up to $3.63 million in consumer restitution and $1.25 million in costs and fees to the states. The enforcement action highlights ongoing state-level efforts to hold companies accountable for alleged pandemic-era price gouging and deceptive trade practices and offers lessons for companies navigating consumer protection compliance during public health emergencies and beyond.

Background

From 2020 to 2022, GS Labs operated COVID-19 testing sites across multiple states. The attorneys general of Kansas, Minnesota, Nebraska, and Washington led a multistate investigation into whether GS Labs unfairly or deceptively charged consumers for its testing services. The coalition ultimately also included Alabama, Arizona, Colorado, Illinois, Indiana, Iowa, Massachusetts, Missouri, New Jersey, North Dakota, Ohio, Oregon, Pennsylvania, and South Dakota.

The investigation revealed several categories of alleged misconduct:

• Inflated Cash Prices: The states claimed that GS Labs charged inflated cash prices for its tests—in some cases as much as $380 per test, or close to $1,000 for multi-panel tests—which were used to justify overcharging patients with insurance coverage. Approximately 30,000 patients allegedly paid in excess of market rates.
• Administrative Fees: GS Labs allegedly advertised that patients covered by insurance would face no out-of-pocket costs, but it still charged administrative fees as high as $49 to approximately 70,000 patients.
• Delayed Test Results: The company allegedly guaranteed quick turnaround time on test results (within three days) but failed to deliver, with some results taking a week or more.

The Multistate Group deemed this conduct to constitute unfair or deceptive acts or practices in violation of applicable state consumer protection statutes.

Key Settlement Terms

The assurances of discontinuance or voluntary compliance filed in each state impose both monetary and injunctive obligations on GS Labs.

Monetary Relief. GS Labs is required to pay a total of approximately $4.88 million, allocated as follows: $1.75 million in restitution for consumers who were charged administrative fees; $1.85 million in restitution for consumers who paid out-of-pocket prices exceeding agreed-upon rates for PCR tests, rapid PCR tests, rapid antibody tests, and rapid antigen tests; $33,692 in restitution for consumers who did not receive PCR test results within the advertised three-day window; and $1.25 million for costs and reasonable attorney’s fees incurred by the Multistate Group.

Consumer Refund Mechanism. GS Labs must provide a simple online mechanism for eligible consumers to request and obtain refunds within 30 calendar days of a consumer’s request, designed to not be difficult, costly, confusing, or time-consuming. GS Labs must also make reasonable efforts to locate eligible consumers, including emailing each consumer at their last-known email address within 30 days of entry of the assurance and sending a follow-up email within 90 days.

Any consumer restitution amounts that remain unclaimed after one year will be remitted to and allocated among the states.

Injunctive Terms. GS Labs agreed to discontinue the challenged practices and to comply with all requirements of applicable consumer protection laws. The company must disclose in its marketing materials the maximum time it will take to return test results and the actual cash price charged to consumers, including any available discounts. GS Labs must endeavor to report all COVID-19 test results within the advertised time period and, where that is not practicable, actively notify the consumer and offer a full refund. The company is also prohibited from charging administrative fees for COVID-19 testing services and from unjustifiably increasing prices for testing during a declared emergency.

Why It Matters

The GS Labs settlement provides several takeaways for companies operating in healthcare and adjacent sectors in the post-pandemic consumer protection landscape.

• Multistate AG coalitions remain a potent enforcement tool. While recent years have seen an increase in state AGs initiating litigation and single-state investigations, the GS Labs settlement should serve as a reminder that AGs are still pursuing formal multistate investigations as well.
• COVID-era investigations remain pending. The 18-state coalition demonstrates that attorneys general continue to pursue coordinated enforcement against perceived pandemic-era abuses, even years after the emergency period has passed. Companies that engaged in practices during the COVID-19 emergency should not assume that the passage of time insulates them from enforcement scrutiny. Relatedly, companies may need to maintain records sufficient to demonstrate the reasonableness of their pricing and compliance with COVID-era price-gouging rules.
• Advertising claims must match service delivery. GS Labs’ liability exposure arose not only from its pricing but also from its alleged failure to deliver test results within advertised timeframes and its representation that insured patients would face no out-of-pocket costs. Companies that make performance guarantees or pricing representations in advertising materials, even during emergency situations, must honor those commitments or face potential UDAP liability.

Troutman Pepper Locke State Attorneys General Team

	Ashley Taylor – Co-leader and Firm Vice Chair Ashley is co-leader of the firm’s nationally ranked State Attorneys General practice, vice chair of the firm, and a partner in its Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. He helps his clients navigate the complexities involved with multistate attorneys general investigations and enforcement actions, federal agency actions, and accompanying litigation.
	Clay Friedman – Co-leader Clay co-leads the firm’s State Attorneys General practice and is nationally ranked by Chambers USA for AG Government Relations and in Best Lawyers for Advertising Law. He has dedicated his entire career to state attorney general and federal work, serving for nearly a decade in a senior role and more than 25+ years in private practice. Clay focuses his practice on helping industry-leading companies mitigate the risks associated with state and federal regulatory investigations and associated litigation.
	Chris Carlson Chris advises clients on regulatory, civil, and criminal investigations and litigation. With a background as an assistant attorney general, he provides practical guidance to clients with matters involving state attorneys general and federal regulatory agencies.
	Lauren Fincher Lauren has vast experience handling state attorneys general investigations, navigating complex regulatory compliance matters, and providing strategic counsel in enforcement actions across various industries. She helps clients manage high-stakes regulatory matters and guides them through complex legal landscapes.
	Stephen Piepgrass Stephen leads the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, representing clients in single and multistate enforcement actions, including inquiries and investigations, as well as litigation involving state attorneys general and other state and federal governmental enforcement bodies. He has significant experience handling actions with federal agencies, including the CFPB and FTC, as well as single plaintiff and class action litigation for clients in highly regulated sectors such as financial services, health care, pharmaceutical, and education.
	Michael Yaghi Mike handles high-profile state attorneys general, FTC, and CFPB investigations by advising clients through these complex government inquiries. He assists clients through the entire life cycle of investigations, from regulatory enforcement through formal litigation.
	Matthew J. Berns Drawing on his experience in senior leadership roles in the New Jersey Attorney General’s and Governor’s Offices and as a trial attorney for the U.S. Department of Justice, Matt provides an insider’s perspective when guiding clients through complex government investigations, litigation, and other actions.
	Samuel E. “Gene” Fishel Gene is a former regulator with two decades of experience who has overseen state privacy and cybersecurity regulation enforcement, led national, multistate attorneys general privacy investigations, and prosecuted computer crimes at the state and federal levels. He has served at the forefront of state attorney general and federal enforcement, and utilizes this experience to proficiently represent client interests.
	Jeff Johnson Jeff helps clients navigate complex regulatory and litigation challenges with local, state, and federal authorities. His clients benefit from his decade of broad litigation experience, understanding of emerging state and federal regulatory issues, and strong relationships with attorneys general across the U.S. In addition to handling cases from trial through state or federal appeals, Jeff serves as amicus counsel in advancing legal rules to support his clients’ vital interests.
	Jay Myers Jay assists clients in heavily regulated industries, including health care, energy, insurance, emerging industries, and data privacy. He provides both regulatory legal advice and government relations strategies. Jay’s past and current clients include Fortune 10 companies, startups, nonprofits, industry associations, and advocacy groups. Recognizing that state government matters are often complex and multifaceted, he utilizes regulatory guidance, government advocacy, or both in tandem to deliver tailored solutions for each client’s unique needs.
	Zoe Schloss Zoe represents clients in litigation and government investigations. As former deputy attorney general for the Delaware Department of Justice, she is an experienced litigator who understands the enforcement priorities that impact her clients. Zoe works with individuals and corporate entities in highly regulated industries, including financial services, health care, and energy.
	Jessica Birdsong Jessica is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement Practice Group. She received her J.D. from the University of Richmond School of Law, magna cum laude, where she served as associate articles editor of the Journal of Law & Technology.
	Sydney Goldberg Sydney is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. She has additional experience assisting with corporate transactions and finance matters.
	Troy Homesley Troy is an accomplished litigator who has represented and defended clients across a wide range of complex, high-stakes disputes at both the trial and appellate levels. He has represented technology companies, business executives, law firms, investment funds, high-ranking federal officials, international non-profits, and asylum seekers. Troy draws on his broad litigation experience to advise clients before litigation arises, while claims are pending or threatened, and leading up to and through trial and appeals.
	Namrata Kang Namrata (Nam) is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, based in the Washington, D.C. office. She routinely advises clients on a wide variety of state and federal regulatory matters, with a particular emphasis on state consumer protection laws relating to consumer financial services and marketing and advertising. Nam’s experience transcends multiple industries, including financial services, telecommunications, media, and sports betting.
	Michael Lafleur Michael is an associate in the firm’s Regulatory Investigations, Strategy, and Enforcement Practice Group. Based out of the firm’s Boston office, Mike has deep experience in litigation, investigations, and other regulatory matters involving state-level regulators and state attorneys general.
	William LaRosa Bill represents clients in complex regulatory investigations, state attorneys general matters, and enforcement proceedings, drawing on his experience as a former assistant U.S. attorney and private sector litigator in high stakes, multistate AG and regulatory matters.
	Philip Nickerson Philip represents clients in sectors such as financial, tech, real estate, and energy in a range of litigation matters. He is experienced in matters involving trade secrets, government investigations, commercial contracts, construction and product defect.
	Lane Page Lane specializes in federal and state regulatory investigations and complex civil litigation. He focuses on representing financial institutions and other businesses, with a particular emphasis on consumer protection and fair lending issues.
	Dascher Pasco Dascher is an attorney within the Regulatory Investigations, Strategy, and Enforcement practice, based in the Richmond office. She joined our firm after working in personal injury and medical malpractice for a Virginia trial law firm. Dascher brings varied legal experience to the firm with strong litigation and regulatory strategy capabilities.
	Kyara Rivera Rivera Kyara is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement Practice Group. She received her J.D. from the University of Richmond School of Law, cum laude, where she served as publications and online editor of the Public Interest Law Review.
	Timothy Shyu Timothy is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement Practice Group.
	Trey Smith Trey focuses his practice on representing and advising regulated utilities before state public utility commissions. He routinely helps clients obtain certificates of public convenience and necessity for transmission infrastructure. In this role, Trey works with his clients’ subject-matter experts to manage administrative proceedings, including by preparing initial filings; responding to discovery requests; drafting rebuttal testimony; and litigating any disputed issues.
	Daniel Waltz Dan helps clients navigate all aspects highly regulated relationships between industry participants and federal, state and local governments. Whether engaging with regulators, negotiating transactions or representing clients in the courtroom, he delivers solutions that help his clients achieve their strategic goals.
	Stephanie Kozol Stephanie is Troutman Pepper Locke’s senior government relations manager in the state attorneys general department.