Stericycle pays $27.5 million in whistleblower lawsuit settlement

LAKE FOREST - Stericycle Inc. will pay $26.7 million as part of a settlement over a 7-year-old whistle-blower lawsuit brought against the company.

A former Stericycle employee filed the lawsuit in 2008 on behalf of the federal government, 14 states and the District of Columbia, alleging Stericycle improperly increased its service price to certain government customers by passing on cost increases without contractual authorization.

Stericycle denied all the allegations and is settling the matter without admitting fault or wrongdoing, the company said in a statement.

Stericycle will paying a total of $26.75 million the Federal Government and all affected states to resolve all claims.

The parties announced that they agreed to settle the matter to avoid the delay, uncertainty, and expense of continued litigation.