Madigan sues drug-testing firm with Blago ties for overbilling

Illinois Attorney General Lisa Madigan has sued a Chicago drug-testing company with close ties to former Gov. Rod Blagojevich for allegedly overbilling the state for work that was never done.

The lawsuit, filed Tuesday in Cook County Circuit Court, seeks $3.9 million in damages and civil penalties from K.K. Bio-Science Inc. 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. MahajanÂ'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."