Burlington, North Carolina-based LabCorp disclosed the proposed settlement payment in a securities filing. During today’s second-quarter earnings conference call, LabCorp executives did not discuss the lawsuit or the settlement other than to repeat what was disclosed in the filing that said that the company is settling “to avoid the uncertainty and costs associated with prolonged litigation.”
LabCorp said that because of the settlement the company has recorded a second-quarter, pre-tax charge of $34.5 million, $20.7 million after tax. The settlement is subject to negotiation and execution of a settlement agreement and release. LabCorp competitor Quest Diagnostics is on the hook for even more money. In May, Quest reached a $241 million settlement agreement, which amounts to the largest recovery in the history of California’s False Claims Act.