Life Sciences

Quest to pay $302M for subsidiary's alleged misbranding

Device Regulation Alert: Safety, Compliance and Reimbursement News, April 27, 2009

Quest Diagnostics and its subsidiary, Nichols Institute Diagnostics (NID) will pay $302 million to resolve civil and criminal allegations NID sold misbranded diagnostic tests, according to a Department of Justice (DOJ) release.

NID pleaded guilty to felony misbranding and will pay a criminal fine of $40 million. Quest entered into a deferred prosecution agreement. Quest and NID will also pay $262 million plus interest to resolve False Claims Act allegations relating five assays manufactured by NID that allegedly provided inaccurate results.

Read more about Quest’s resolution of the allegations.

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