Calif. Claims Quest, Others Defrauded State Of Millions

Law360, New York (March 23, 2009, 12:00 AM EDT) -- The state of California is seeking to recover hundreds of millions of dollars from seven private medical laboratories, including Quest Diagnostics Inc. and Laboratory Corp. of America, in what Attorney General Jerry Brown described as “massive fraud” on the state's Medicaid system that thwarted competition among labs.

Brown announced Friday that the state had intervened in a qui tam suit in the Superior Court of the State of California in and for the county of San Mateo, which had been filed by Hunter Laboratories, a company...
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