Quest Diagnostics Finalizes Agreement to Settle California Lawsuit Related to Medi-Cal Billing

Quest Diagnostics Incorporated DGX today announced it has finalized an agreement to settle a previously disclosed civil lawsuit, brought by a California competitor against a number of California clinical laboratories, in which the State of California intervened, for a payment of $241 million. The company had announced an agreement in principle to resolve the lawsuit on May 9, 2011. In the lawsuit, the plaintiffs alleged, among other things, that the company did not comply with California's "comparable charge" regulations, resulting in overpayments for laboratory testing services by Medi-Cal, California's Medicaid program.