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NASHVILLE, Tenn. -- A federal appeals court has overturned an $11 million judgment against an Atlanta-based healthcare company with diagnostic testing facilities in 13 states.

The 6th U.S. Circuit Court of Appeals said Monday that the fine a lower court leveled against MedQuest Associates in 2011 was excessive and should be overturned.

The lower court had found that three of the company's subsidiaries based in Nashville had violated some regulations required when they filed for reimbursement under Medicare. It found the company had used physicians that were not approved by Medicare and had been billing under a code used previously by a business that MedQuest later purchased.

The appeals court said these infractions were not violations of the federal False Claims Act and the company shouldn't have to pay the fines.