Friday, August 18, 2006

Transcriptionist Class Action Filed Against MedQuist Inc

MT. LAUREL, N.J. -- MedQuist Inc. (Pink Sheets: MEDQ.PK) today announced the filing of a new lawsuit against the Company, styled Myers, et al. v. MedQuist Inc. and MedQuist Transcriptions, Ltd., Case No. 05CV 4608 (JBS). The action is allegedly brought on behalf of a putative class of MedQuist's employee and independent contractor transcriptionists who claim that they contracted with the Company to be paid per "AAMT line," but were underpaid due to intentional miscounting of the number of characters and lines transcribed. The AAMT unit of measure was jointly developed by the American Association of Medical Transcriptionists and other industry groups, but is no longer supported by these groups due to ambiguities inherent in the definition. The named plaintiffs assert claims for breach of contract, unjust enrichment, and request an accounting.

The allegations of the Myers case are substantially similar to those in Hoffman, et al. v. MedQuist, et al., Case No. 1:04-CV-3452 (WSD), another putative class action filed earlier this year in federal court in Georgia. The Company is seeking to have the Hoffman action transferred to New Jersey and will request that it be consolidated with the Myers case. As with the Hoffman action, the Company believes that the claims asserted in Myers have no merit, and will vigorously defend against the allegations.

MedQuist, a member of the Philips Group of Companies, is a leading provider of electronic medical transcription, health information and document management products and services. MedQuist provides document workflow management, digital dictation, speech recognition, mobile dictation devices, Web-based transcription, electronic signature, medical coding products and outsourcing services.


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