After Quest Diagnostics agreed to pay $241 million to settle a lawsuit that alleged the Company overcharged California's Medicaid program an investigation on behalf of on behalf of investors in shares of Quest Diagnostics Incorporated (NYSE:DGX) over possible breaches of fiduciary duties by certain officers and directors at Quest Diagnostics Inc. was announced.

The investigation by a law firm focuses on possible shareholder claims based on whether certain directors and officers of Quest Diagnostics harmed Quest Diagnostics Incorporated by breaching their fiduciary duties to shareholders by causing or permitting certain companys employees to illegally provide kickbacks to healthcare professionals in exchange for using Quest Diagnostics' services.
Quest Diagnostics annual Total Revenue rose from $6.7billion in 07 to $7.368billion In 2010. Its Net Income more than doubled over the same time frame from $339.94million in 07 to $720.89million in 2010.

On the other hand shares of Quest Diagnostics Incorporated (Public, NYSE:DGX) traded during 09 as high as $61.58 per share and fell during 2010 twice under $45 per share. Recently DGX shares traded at slightly under $58 per share.

On May 9, 2011, Quest Diagnostics agreed to pay $241 million to settle a lawsuit that alleged the Company overcharged California's Medicaid program for laboratory testing services. According to that action, Quest Diagnostics charged Medi-Cal up to six times more for such services than it charged other customers.