LabCorp 2014 Annual Report Download - page 112

F-33
On August 24, 2012, the Company was served with a putative class action lawsuit, Sandusky Wellness Center, LLC, et al. v.
MEDTOX Scientific, Inc., et al., filed in the United States District Court for the District of Minnesota. The lawsuit alleges that on
or about February 21, 2012, the defendants violated the federal Telephone Consumer Protection Act by sending unsolicited
facsimiles to Plaintiff and more than 39 other recipients without the recipients' prior express invitation or permission. The lawsuit
seeks actual damages or the sum of $0.0005 for each violation, subject to trebling under TCPA, and injunctive relief. In September
of 2014, Plaintiff’s Motion for Class Certification was denied. In January of 2015, the Company’s Motion for Summary Judgment
on the remaining individual claim was granted. Plaintiff has filed a notice of appeal. The Company will vigorously defend the
lawsuit.
The Company was a defendant in two separate putative class action lawsuits, Christine Bohlander v. Laboratory Corporation
of America, et al., and Jemuel Andres, et al. v. Laboratory Corporation of America Holdings, et. al., related to overtime pay. After
the filing of the two lawsuits on July 8, 2013, the Bohlander lawsuit was consolidated into the Andres lawsuit, and the consolidated
lawsuit is now pending in the Superior Court of California for the County of Los Angeles. In the consolidated lawsuit, the Plaintiffs
allege on behalf of similarly situated phlebotomists and couriers that the Company failed to pay overtime, failed to provide meal
and rest breaks, and committed other violations of the California Labor Code. The complaint seeks monetary damages, civil
penalties, costs, injunctive relief, and attorney's fees. The parties have reached a tentative class settlement, which is subject to
Court approval. The Court will hold a hearing on the merits of the settlement terms on February 26, 2015. If the settlement is
not approved by the Court, the Company will continue to vigorously defend the lawsuit.
The Company is also a defendant in two additional putative class action lawsuits alleging similar claims to the Bohlander/
Andres consolidated lawsuit. The lawsuit Rachel Rabanes v. California Laboratory Sciences, LLC, et al., was filed in April 2014
in the Superior Court of California for the County of Los Angeles, and the lawsuit Rita Varsam v. Laboratory Corporation of
America DBA LabCorp, was filed in June 2014 in the Superior Court of California for the County of San Diego. In these lawsuits,
the Plaintiffs allege on behalf of similarly situated employees that the Company failed to pay overtime, failed to provide meal and
rest breaks, and committed other violations of the California Labor Code. The complaints seek monetary damages, civil penalties,
costs, injunctive relief, and attorney's fees. The Company will vigorously defend these lawsuits.
On December 17, 2010, the Company was served with a lawsuit, Oliver Wuth, et al. v. Laboratory Corporation of America, et
al., filed in the State Superior Court of King County, Washington. The lawsuit alleges that the Company was negligent in the
handling of a prenatal genetic test order that allegedly resulted in the parents being given incorrect information. The matter was
tried before a jury beginning on October 21, 2013. On December 10, 2013, the jury returned a verdict in in plaintiffs’ favor in the
amount of $50.0, with 50.0% of liability apportioned to the Company and 50.0% of liability apportioned to co-defendant Valley
Medical Center. The Company filed post-judgment motions for a new trial, which were denied, and is vigorously pursuing an
appeal of the judgment on multiple grounds. The Company carries self-insurance reserves and excess liability insurance sufficient
to cover the potential liability in this case.
On July 3, 2012, the Company was served with a lawsuit, John Wisekal, as Personal Representative of the Estate of Darien
Wisekal v. Laboratory Corporation of America Holdings and Glenda C. Mixon, filed in the Circuit Court of the Fifteenth Judicial
Circuit in and for Palm Beach County, Florida. The lawsuit alleges that the Company misread a Pap test. The case was removed
to the United States District Court for the Southern District of Florida. The matter was tried before a jury beginning on April 1,
2014. On April 17, 2014, the jury returned a verdict in Plaintiff’s favor in the amount of $20.8, with non-economic damages
reduced by 25% to account for the Plaintiff's negligence, for a final verdict of $15.8. The Company filed post-trial motions. On
July 28, 2014, the Court granted the Company’s motion for remittitur and reduced the jury’s non-economic damages award to
$5.0, reduced by 25.0% for the Plaintiff’s negligence. Accordingly, the total judgment is $4.4. In December of 2014, the Court
granted Plaintiff’s Motion to Certify the remittitur order for interlocutory appeal, and stayed the case pending the Eleventh Circuit
Court of Appeal’s review of the Plaintiff’s challenge to the reduction in the judgment.
On July 9, 2014, the Company was served with a putative class action lawsuit, Christopher W. Legg, et al. v. Laboratory
Corporation of America, filed in the United States District Court for the Southern District of Florida. The complaint alleges that
the Company violated the Fair and Accurate Credit Transactions Act (“FACTA”) by allegedly providing credit card expiration
date information on an electronically printed credit card receipt. The lawsuit seeks statutory and punitive damages, injunctive
relief, and attorney’s fees. The Company will vigorously defend the lawsuit.
In October 2014, the Company became aware of, but was not served with, a False Claims Act lawsuit, United States of America
and State of California ex rel. Elisa Martinez v. Quest Diagnostics Incorporated, et al., filed in the United States District Court
for the Eastern District of California. The lawsuit alleged that Quest and the Company submitted false claims to the United States
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in millions, except per share data)