Key Issue: What does Jack Nicholson have to do with Al Nichols and Nichole’s son?

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Al Nichols was the founder and director of the Nichols Institute, a major clinical reference laboratory in California that specialized in esoteric testing services. Some key information about Al Nichols and the Nichols Institute:

Al Nichols founded the Nichols Institute in 1971 in San Juan Capistrano, California. He served as its director for many years.

The Nichols Institute became known for offering a wide range of specialized diagnostic tests that were not commonly available from other labs at the time. This included testing in areas like endocrinology, allergy, toxicology, and immunology.

Under Al Nichols' leadership, the Nichols Institute grew to become one of the largest esoteric testing labs in the United States. By the 1990s it had several hundred employees.

In 1994, the Nichols Institute was acquired by Quest Diagnostics, a major national clinical laboratory company, for around $100 million. After the acquisition, the lab continued to operate under the Nichols Institute name as a specialty testing center within Quest.

Al Nichols was regarded as a pioneer in the esoteric testing field. He emphasized high-quality lab services, innovation in test development, and physician education on the clinical applications of new diagnostic tests.

So in summary, Al Nichols founded and led the influential Nichols Institute which specialized in advanced clinical diagnostic testing and became a leader in that niche of the laboratory industry before being acquired by Quest Diagnostics in the 1990s. The institute reflected Nichols' vision and expertise in the esoteric testing domain.

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Based on the information provided, it appears that Quest Diagnostics and its subsidiary Nichols Institute Diagnostics (NID) faced several challenges and controversies in the late 1990s and early 2000s:

In the late 1990s, Nichols Institute sought to revamp its board of directors to emphasize business expertise over scientific backgrounds. In a move to address issues facing the company, Nichols replaced three of its seven directors in the late 1990s:

The new directors included Rock N. Hankin (a former Price Waterhouse partner), George L. Bragg (an ex-Western Digital executive), and Frederic M. Roberts (an investment banker).

They replaced two Ph.D.s, Rosabeth M. Kanter and James A. Riddell, as well as physician John T. Potts.

Chairman Albert L. Nichols also planned to recommend replacing two other directors, Norman W. Achen and Earl L. Wr(….), with more business-oriented board members. Only Nichols and interim CEO/CFO Paul Bellamy would remain.

In January 2001, Quest Diagnostics agreed to refund $13.08 million to federal and state government healthcare programs to resolve claims related to certain pre-1994 billing and marketing practices at several former Nichols Institute facilities.

The government alleged Nichols' labs in five states performed and billed for "medically unnecessary" tests. Quest denied wrongdoing but settled, with Corning covering the cost via indemnification.

In April 2009, Quest and NID entered into a larger $302 million settlement with the U.S. government to resolve criminal and civil claims that NID sold misbranded or unreliable diagnostic test kits until 2006.

NID pled guilty to a felony misbranding charge and paid a $40 million criminal fine.

The civil settlement resolved False Claims Act allegations that five NID assays produced inaccurate results, causing false federal reimbursement claims. Quest paid $262 million plus interest.

Whistleblower Thomas Cantor received a $45 million award.

Despite the legal issues, NID expanded in 2002 by consolidating into a newly developed 86,000 sq ft headquarters and lab facility in San Clemente, California, with Quest guaranteeing the long-term lease.

In summary, Nichols Institute faced significant regulatory scrutiny and litigation exposure in the early 2000s, stemming from both pre-acquisition and post-acquisition conduct. The board changes in the late 1990s were likely an attempt to reform the organization, but subsequent settlements show the challenges persisted after Quest's acquisition. Nevertheless, Quest still invested in NID's growth, supporting the subsidiary's 2002 headquarters consolidation and expansion.