UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
April 5, 2011
UNITED STATES OF AMERICA EX REL FAIR LABORATORY PRACTICES ASSOCIATES, PLAINTIFF,
QUEST DIAGNOSTICS INCORPORATED, REDACTED UNILAB CORPORATION, D/B/A QUEST DIAGNOSTICS, AND XYZ CORPORATIONS 1-100 DEFENDANTS,
The opinion of the court was delivered by: Robert P. Patterson, Jr., U.S.D.J.
OPINION AND ORDER
On May 14, 2010, Plaintiff, Fair Laboratory Practices Associates ("Plaintiff", "FLPA" or "relators"), filed a Second Amended Complaint ("SAC") under seal in a qui tam action against Defendants Quest Diagnostics Incorporated, Unilab Corporation, d/b/a Quest Diagnostics, and XYZ Corporations 1-100 under the Federal False Claims Act ("FCA"), 31 U.S.C. §§ 3729-33 and the respective false claims acts of seventeen states and the District of Columbia.*fn1 Plaintiff alleges that Defendants violated the Federal Health Care Anti-Kickback Act, 42 U.S.C. § 1320a- 7b(b) ("Anti-Kickback Statute" or "AKS") in offering medical testing services for managed care patients at a substantial discount or below cost in order to receive referrals of Medicare and Medicaid patients that Defendants could bill directly.