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Quest Diagnostics will pay $302 million to resolve whistleblower suit

By Phillips & Cohen LLP

Quest Diagnostics has agreed to pay $302 million to resolve allegations brought by a whistleblower that its subsidiary manufactured and sold faulty blood test kits.

The tests were used to determine the concentration of a parathyroid hormone in dialysis patients. Doctors determined the treatment of dialysis patients based on the test results, so accurate results were essential. Innaccurate results can lead to unnecessary surgery to remove the parathyroid or administration of unnecessary treatment that can cause a painful, deadly disease.

The whistleblower in the case, Thomas Cantor, had tried to alert the medical community to the faulty tests since 2000. In 2004 he filed a suit under the False Claims Act. He was represnted by the law firm of Phillips & Cohen LLP.

The Dept. of Justice press release said that the subsidiary, Nichols Institute Diagnostic, would also plead guilty to felony charges.

Full post as published by False Claims Act - Qui Tam on April 20, 2009 (boomark / email).