Quest Agrees To Settle Calif. Medicaid Suit For $241M

Law360, New York (May 9, 2011, 7:42 PM EDT) -- Quest Diagnostics Inc. said Monday it had agreed to pay $241 million to settle a lawsuit brought by a competitor and joined by California that accused the company of overcharging that state's Medicaid program for laboratory testing services.

In a statement, Quest said that the payment, part of an agreement in principle, would resolve allegations that it did not comply with the state's so-called comparable charge regulations, resulting in the overpayments from Medi-Cal. The suit was filed under seal by Hunter Laboratories in November 2005 under...
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