HARRISBURG — Pennsylvania is among 18 states participating in a $4.87 million multistate settlement with GS Labs that resolves allegations the company overcharged patients for COVID-19 tests and failed to provide results within promised timeframes, Attorney General Dave Sunday announced Tuesday.

Under the settlement, GS Labs will provide $3.6 million in restitution to affected patients nationwide and pay an additional $1.25 million to the participating states.

“Pennsylvanians deserve medical testing with integrity, fair pricing, and timely results,” Sunday said in a statement. “Unfortunately, GS Labs exploited the huge demand for testing to make large profits while not fulfilling their obligations to patients.”

According to the Attorney General’s Office, a multistate investigation found that GS Labs advertised inflated cash prices for COVID-19 tests, in some cases charging up to $380 for a single test and nearly $1,000 for certain multi-panel tests. Investigators alleged the company used those prices to justify higher charges to insured patients while still charging cash-paying customers well above market rates.

The investigation also found that GS Labs promised test results within three days for hundreds of thousands of patients but often took a week or longer to provide results. Additionally, the company allegedly charged administrative fees of up to $49 per test to approximately 70,000 patients despite advertising that insured patients would have no out-of-pocket costs.

The settlement includes $1.8 million in restitution for cash-paying patients who were overcharged, $1.7 million for patients charged administrative fees and nearly $34,000 for cash-paying patients who did not receive test results within the promised three-day period.

Pennsylvanians who may be eligible for restitution are expected to receive information from GS Labs regarding how to file claims through an online restitution program that will be administered by the company under oversight from the multistate coalition.

GS Labs has stated that it is no longer operational and does not currently provide testing services. Under the agreement, the company must implement changes to its advertising and sales practices if it resumes testing operations in the future.

The settlement was negotiated by the attorneys general of Kansas, Minnesota, Nebraska and Washington. Pennsylvania joined the agreement along with Alabama, Arizona, Colorado, Illinois, Indiana, Iowa, Massachusetts, Missouri, New Jersey, North Dakota, Ohio, Oregon and South Dakota.