April 15, 2009 — Quest Diagnostics

Quest Diagnostics, and its subsidiary Nichols Institute Diagnostics (NID) have agreed to pay $302 Million to settle qui tam actions filed against them by a private relator, Thomas Cantor.

The allegations of the case were that NID manufactured, marketed and sold medical test kits knowing that some of the kits produced results which were materially inaccurate and unreliable, causing clinical laboratories to bill federal health care programs for unnecessary medical treatments.

As a reward for having filed his qui tam claim, Mr. Cantor will receive approximately $45 Million.

See U.S. Dept of Justice Press Release 4/15/09

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