A Dallas-based clinical laboratory and its investors will pay $24 million to resolve allegations that performed unnecessary tests on seniors who received COVID-19 tests.

Magnolia Diagnostics, and its owners, John Bains and Kelly Bains, will pay $19. 2 million to resolve allegations that they violated the False Claims Act by billing Medicare for unnecessary respiratory tests performed on seniors who were getting COVID-19 tests.

Investors in the laboratory agreed to pay $4. 8 million to resolve common law claims for unjust enrichment and payment by mistake and claims under the Federal Debt Collection Procedures Act.