Quest Diagnostics 2010 Annual Report Download - page 36

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In addition, the Company and certain of its subsidiaries have received subpoenas from state agencies in five
states and from the Office of Inspector General of the U.S. Department of Health and Human Services which
seek documents relating to the Company’s billing practices. The Company is cooperating with the requests.
The federal or state governments may bring claims based on new theories as to the Company’s practices
which management believes to be in compliance with law. In addition, certain federal and state statutes, including
the qui tam provisions of the federal False Claims Act, allow private individuals to bring lawsuits against
healthcare companies on behalf of government or private payers. The Company is aware of certain pending
individual or class action lawsuits, and has received several subpoenas, related to billing practices filed under the
qui tam provisions of the Civil False Claims Act and/or other federal and state statutes, regulations or other laws.
The Company understands that there may be other pending qui tam claims brought by former employees or other
“whistleblowers” as to which the Company cannot determine the extent of any potential liability.
Several of these matters are in their early stages of development and involve responding to and cooperating
with various government investigations and related subpoenas. While the Company believes that at least a
reasonable possibility exists that losses may have been incurred, based on the nature and status of the
investigations, the losses are either currently not probable or a range of loss cannot be reasonably estimated.
Item 4. Removed and Reserved
33