MADISON, N.J., April 15 /PRNewswire-FirstCall/ -- Quest Diagnostics Incorporated (NYSE: DGX) today announced it finalized resolution of the previously disclosed federal government investigation related to certain test kits manufactured by NID, a test kit manufacturing subsidiary closed voluntarily in 2006. Quest Diagnostics cooperated with the government since its investigation began in 2004.
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 t
|SOURCE Quest Diagnostics Incorporated|
Copyright©2009 PR Newswire.
All rights reserved