Quest Diagnostics is one of seven private medical labs being sued by the state of California for costing the state hundreds of millions of dollars by overcharging Medi-Cal by as much as 400 percent. The whistleblower in this case is Chris Riedel, CEO of Hunter Laboratories, who refused to join in the price-gouging practices. The seven defendants are: Quest Diagnostics; Health Line Clinical Labs; Westcliff Medical Labs; Physicians Immunodiagnostic Laboratory; Whitefield Medical Laboratory; Seacliff Diagnostics Medical Group, and; Laboratory Corporation of America.
Quest Diagnostics is a repeat player, having previously paid $302 million to settle federal civil and criminal charges related to a Quest subsidiary which sold a parathyroid hormone immunoassay test which reported elevated results. Quest then had to pay an additional $12.5 million to settle state claims concerning the accuracy of diagnostic tests.
Here is the qui tam complaint: