Ill. AG sues drug-testing company

March 4, 2009 6:32:05 AM PST
Illinois Attorney General Lisa Madigan is suing a Chicago drug-testing company.She says K.K. Bio-Science overbilled the state for work that was never done.

The lawsuit seeks $3.9 million in damages and civil penalties.

The owner of the now-defunct company, Anita Mahajan, is faced with criminal charges stemming from the alleged fraud.

Mahajan was involved in real-estate transactions that in 2006 netted Patti Blagojevich $113,000 in commissions. Mahajan's husband, Amrish, was a major fundraiser for the impeached ex-governor in the Indian-American community.

In a prepared statement, Madigan said her office will take every action necessary to recover the taxpayer money that this company wrongfully obtained."

The Associated Press contributed to this report.