Kaiser Foundation Health Plan, Inc. has filed a lawsuit against Virus Geeks Inc. and its CEO, Frank Lee, accusing them of orchestrating a fraudulent scheme that cost Kaiser millions during the COVID-19 pandemic. The complaint was lodged in the Superior Court of California, County of San Francisco on January 10, 2025.
The lawsuit alleges that Virus Geeks exploited the pandemic to profit at the expense of Kaiser by submitting fraudulent claims for COVID-19 testing services. According to Kaiser, Virus Geeks misrepresented their services and used unauthorized billing codes to charge higher fees than justified. The complaint details how Virus Geeks billed health plans using codes meant for hospital outpatient departments, despite not being one, leading to overpayments by Kaiser totaling over $3.25 million.
Kaiser further accuses Frank Lee of using these ill-gotten gains to fund a lavish lifestyle, purchasing luxury items such as Rolex watches and high-end vehicles. Additionally, the complaint states that Virus Geeks falsely claimed to have a CLIA certification necessary for certain billings and improperly used a doctor's National Provider Identifier without consent.
The lawsuit seeks several forms of relief from the court: actual and compensatory damages, restitution of funds wrongfully obtained by Virus Geeks, punitive damages against Frank Lee personally as an alter ego of the company, injunctive relief to prevent further misconduct, and any other relief deemed appropriate by the court.
Representing Kaiser in this legal battle are attorneys John T. Brooks, John F. Burns, and Robert Winson from Sheppard Mullin Richter & Hampton LLP. The case is identified under Case No. CGC-25-621304 in front of the Superior Court of California in San Francisco County.