$302M Settles DOJ Probe Into Shoddy Quest Test Kits

Law360, New York (April 15, 2009, 12:00 AM EDT) -- Marking one of the largest recoveries for the U.S. government in a medical device probe, Quest Diagnostics Inc. has agreed to pay $302 million to resolve civil and criminal allegations that subsidiary Nichols Institute Diagnostics sold and misbranded inaccurate test kits.

The settlement brings to fruition the investigation the government launched in 2004 after a whistleblower sued NID for violating the False Claims Act by selling test kits to clinics and medical providers that resulted in unnecessary federal reimbursements.

The suit alleged that five types of...
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