Settlement Agreement - Attorney General - State of California

DHCS and to DOJ such of those documents, records, and data as one or both of them may from
time to time request.
14. The reporting obligations of this Section III.C, and the transitional
discount provisions of Section III.C.8, shall terminate in the event of a statutory change, a
regulatory change, or a change in interpretation by DHCS, an administrative tribunal, or a court,
that materially alters the language or effect of Section 51501(a) (a “51501 Alteration”). In the
event of a 51501 Alteration, the forbearances by California, DOJ, and DHCS described in
Sections III.C.15 and III.C.16 shall remain in effect with respect to tests or services with dates of
service prior to the date of a 51501 Alteration, to the extent all conditions underlying the
forbearances are otherwise met, but shall terminate with respect to tests or services with dates of
service after the date of a 51501 Alteration.
15. Subject to the exceptions in Section III.K of this Settlement
Agreement, California and the Qui Tam Plaintiffs agree that they will not bring (1) any action
against the Quest Releasees under (a) the California False Claims Act, which is found at Section
12650 et seq. of the California Government Code, or (b) the federal False Claims Act, which is
found at 31 U.S.C. §§ 3729 et. seq. (to the extent, if any, that California or the Qui Tam Plaintiffs
can assert such a federal claim), either of which is based on an alleged violation of Section
51501(a), 51480(a), 51529(a)(2), or 51529(a)(4)(E) of Title 22 of the California Code of
Regulations, or (2) any action under the California or federal False Claims Act (to the extent, if
any, that California or the Qui Tam Plaintiffs can assert such a federal claim) that is based on an
alleged violation of California Business and Professions Code Section 650, California Welfare
and Institutions Code Section 14107.2, or other comparable anti-kickback provisions under law,
based on the price levels charged by a Quest Releasee, or on a breach of a Medi-Cal Provider
Agreement based on the price levels charged, with respect to:
a. any charges to Client-Billed Purchasers for tests billed on a
Fee-for-Service basis during a Reporting Period, provided that the information required by this
Settlement Agreement for Client-Billed Purchasers has, in all material ways, been fully,
accurately, and timely disclosed in an Exception Report required by and in accordance with this
Settlement Agreement, but only on the additional conditions that:
i. Quest does not time, apportion, or attempt to time
or apportion the performance or billing of tests, the submission of claims, or any other event, so
as to materially affect the disclosure in the Exception Reports, and
ii. Quest does not in any way attempt to frustrate or
subvert the intent of this Settlement Agreement that the use of a Snapshot Date rather than the
entire Reporting Period will not materially affect the disclosure in the Exception Reports,
b. any charges to Commercial Third Party Payors for tests
billed during a Reporting Period, provided that the information required by this Settlement
Agreement for Commercial Third Party Payors has, in all material ways, been fully, accurately,
and timely disclosed in an Exception Report required by and in accordance with this Settlement
Agreement,
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