Quest Diagnostics will pay $262 million to settle the civil investigation.
While the company disagrees with and does not admit to the government's civil
allegations, it agreed to the settlement to put the matter behind it. Also,
the company entered into a Corporate Integrity Agreement with the government.
In addition, NID agreed to enter a guilty plea to misbranding and to pay a $40
million fine. The misbranding charge was based on claims by NID concerning
performance of a test kit, which, at times, were not true. The payments
totaling $302 million have been previously reserved.
"Quest Diagnostics conducts its business with the highest standards of
quality and integrity, and we regard NID's failure to meet our standards as
unacceptable," said Michael E. Prevoznik, Senior Vice President and General
Counsel of Quest Diagnostics. "This settlement resolves a five-year old
government investigation, and puts it behind us. We are strongly committed to
fulfilling the terms of the Corporate Integrity Agreement, and already have in
place many of the Agreement's requirements."
Quest Diagnostics also expects to enter into separate settlement
agreements with certain states totaling approximately $6 million. The amounts
expected to be paid have also been previously reserved.
About Quest Diagnostics
Quest Diagnostics is the world's leading provider of diagnostic testing,
information and services that patients and doctors need to make better
healthcare decisions. The company offers the broadest access to diagnostic
testing services through its network of laboratories and patient service
centers, and provides interpretive consultation through its extensive medical
and scientific staff. Quest Diagnostics is a pioneer in developing innovative
diagnostic tests and advanced healthcare information technology solutions that
help improve patient care.
The statements in this press release which are not historical facts may be
forward-looking statements. Readers are cautioned not to place undue reliance
on forward-looking statements, which speak only as of the date that they are
made and which reflect management's current estimates, projections,
expectations or beliefs and which involve risks and uncertainties that could
cause actual results and outcomes to be materially different. Risks and
uncertainties that may affect the future results of the company include, but
are not limited to, adverse results from pending or future government
investigations, lawsuits or private actions, the competitive environment,
changes in government regulations, changing relationships with customers,
payers, suppliers and strategic partners and other factors discussed in
"Business" in Part I, Item 1, "Risk Factors" and "Cautionary Factors that May
Affect Future Results" in Part I, Item 1A, "Legal Proceedings" in Part I, Item
3, "Management's Discussion and Analysis of Financial Condition and Results of
Operations" in Part II, Item 7 and "Quantitative and Qualitative Disclosures
About Market Risk" in Part II, Item 7A in the company's 2008 Annual Report on
Form 10-K and other items throughout the Form 10-K and Current Reports on Form
8-K.
SOURCE Quest Diagnostics Incorporated
http://www.questdiagnostics.com/