Attorney General Kamala D. Harris announced a $241 million settlement with Quest Diagnostics to recover illegal overcharges to the state’s medical program for the poor.
Harris’ settlement was the largest recovery in the history of California’s False Claims Act.
“In a time of shrinking budgets, this historic settlement affirms that Medi-Cal exists to help the state’s most vulnerable families rather than to illicitly stoke corporate profits,” said Attorney General Harris. “Medi-Cal providers and others who seek to cheat the state through false claims and illegal kickbacks should know that my office is watching and will prosecute.”
The settlement with Quest is the result of a lawsuit filed under court seal in 2005 by a whistleblower and referred to the Attorney General’s office. The lawsuit alleged that Quest systematically overcharged the state’s Medi-Cal program for more than 15 years and gave illegal kickbacks in the form of discounted or free testing to doctors, hospitals and clinics that referred Medi-Cal patients and other business to the labs. Read more