UTC Labs being sued again, this time for allegedly backing out on $1.6 million settlement

By William Sassani | Aug 9, 2018

NEW ORLEANS – UTC Labs, formerly known as Renaissance Rx, is again facing legal problems after being sued for breach of contract. 

United Healthcare, which filed the suit July 31 in U.S. District Court for the Eastern District of Louisiana, claims that UTC Labs failed to pay the remaining balance on a $1.6 million settlement the two parties had agreed upon in a previous dispute. The settlement totaled $1,625,000, yet after an audit, United Healthcare learned that UTC Labs had only paid $1,064,736. Under the settlement agreement, according to United Healthcare, it is entitled to the remaining balance of the payment, including attorney’s fees and additional costs. 

This is not the first time that the New Orleans-based medical company has faced legal difficulties. As reported previously in the Louisiana Record, UTC Labs has either been sued or has instigated lawsuits, including  cases against previous employees. 

In 2017, the company was sued by a contract worker employed by UTC Labs between November 2014 and February 2015 who claimed UTC Labs committed a breach of contract and UTC Labs did not pay her wages that she had earned. 

In 2016, Alison Diboll, a marketing executive who worked briefly for UTC, sued claiming UTC wanted her to deceive a potential investor. Her suit claims that after securing $44 million in investment funding from an outside investment firm, the company told her they no longer needed her. This was 30 days after she had been hired.  

A former CEO of UTC, David Guzan, sued the company’s founder, Dr. Tarun Jolly, a local New Orleans physician, claiming he was promised a stake in the company worth 1 percent and valued at about $250 million. 

On the other hand, UTC Labs filed a lawsuit against an employee in 2015 claiming the former employee, Anthony B. Remington, used company resources for his own personal benefit. These materials ncluded marketing materials, lists of clients and financial information.

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