Business & Tech
Woburn Medical Company to Close Following Multi-Million Dollar Scandal
Calloway Labs, a Woburn-based toxicology company, will layoff 240 employees when they their doors on Oct. 16.

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Calloway Labs will close its doors for good and layoff 240 employees on Friday, Oct. 16. The company was previously caught up in an illegal kickback scandal.
The Woburn-based toxicology lab is closing due to “unforeseen circumstances beyond the company’s control,” Ball Consulting Group LLC said in statement on behalf of Calloway.
Find out what's happening in Woburnfor free with the latest updates from Patch.
Calloway is in the process of informing its healthcare clients of the news and is recommending other labs with which they can work. Their clients mostly work with pain medicine.
In 2012, Calloway was ordered by the state of Massachusetts to pay $20 million to settle alarming allegations. State officials alleged Calloway had taken part in an illegal kickback scheme.
Find out what's happening in Woburnfor free with the latest updates from Patch.
According to the attorney general’s office, company officials participated in a deal “involving two straw companies that funneled monetary incentives to employees at several sober houses to illegally obtain urine drug screening business paid for by MassHealth.”
Four Calloway officials pleaded guilty in connection to the incident.
Calloway’s 240 employees will received health insurance benefits through the end of October. They will also be left in full control of their retirement funds.
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