ProPhase Labs Faces Unsealed False Claims Act Lawsuit
ProPhase Labs, Inc. PRPH | 0.00 |
ProPhase Labs Inc. has disclosed that a previously sealed civil action under the False Claims Act, originally filed in 2023, has been unsealed by the United States District Court for the Eastern District of New York. The company stated it had no prior knowledge of the lawsuit until receiving notice of the unsealing on November 21, 2025. ProPhase Labs denies any wrongdoing and asserts that its laboratory and diagnostic operations adhere to strict regulatory and compliance standards. The company does not expect the litigation to impact its ongoing operations or services and intends to vigorously defend itself in the matter. All prior private disputes with the plaintiff were resolved and dismissed in 2024, and are separate from the current qui tam action.
