Business
Medlab Pathology Settles CervicalCheck Claims for €26.86 Million
A private laboratory firm, Medlab Pathology Ltd, has paid €26.86 million in settlements and legal costs related to lawsuits stemming from the CervicalCheck scandal. This payment reflects the company’s ongoing legal challenges involving allegations of mismanagement in its role within the Health Service Executive (HSE) CervicalCheck programme between 2011 and 2019.
Recent accounts filed by Medlab Pathology in Dublin reveal that the firm made these payments during the 12-month period ending June 30, 2023. According to the documents, signed by the company’s directors on October 23, 2025, the total gross payments were primarily linked to various High Court actions taken by several women who claim to have suffered due to the alleged failings of the laboratory.
Medlab Pathology received €22.87 million in medical malpractice insurance, which helped offset the financial blow. Consequently, the lab’s net payout for the year amounted to €3.98 million. The accounts also indicate a remaining gross provision of €17.75 million, set aside for ongoing and future CervicalCheck cases still in the court system.
Financial Impact of Legal Challenges
At the start of the litigation process, Medlab Pathology had allocated a gross provision of €49.6 million to cover potential damages and legal expenses connected to the CervicalCheck claims. As of June 30, 2023, the firm reported a net legal provision of €11.1 million, which takes into account an insurance provision of €6.62 million. The outstanding gross provision includes estimates for future claims based on data access requests.
The financial difficulties stemming from these legal battles have significantly impacted Medlab Pathology’s bottom line. The company recorded a loss of €2.64 million in 2023, contributing to accumulated losses of €28.9 million by the end of June 2023.
As a measure to bolster its finances, Medlab Pathology received a capital injection of €3.5 million from its immediate parent company, Sonic Healthcare (Ireland) Ltd, which is headquartered in Australia. This funding is aimed at assisting the laboratory in managing its legal liabilities.
The firm’s directors have stated that Medlab Pathology no longer engages in regular trading. Instead, the primary focus has shifted to managing the legal consequences arising from ongoing litigation. The accounts note that several cases have been settled since the balance sheet date, while others have been discontinued, leaving a portion still active in court.
The ongoing fallout from the CervicalCheck scandal continues to pose challenges for Medlab Pathology, with various cases still pending. The company’s recent financial disclosures highlight the significant impact of these legal issues on its operations and future viability.
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