8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): July 14, 2008

MedQuist Inc.

(Exact Name of Issuer as Specified in Charter)

New Jersey
(State or Other Jurisdiction of
Incorporation or Organization) 0-19941
(Commission File Number) 22-2531298
(I.R.S. Employer Identification
Number)

1000 Bishops Gate Blvd., Suite 300
Mt. Laurel, New Jersey	08054
(Address of Principal Executive Offices)	(Zip Code)

(856) 206-4000
(Registrant’s Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events.

On July 14, 2008, MedQuist Inc. (the “Company”) issued a press release announcing that the Company’s board of directors declared a dividend of $2.75 per share on the Company’s common stock. The dividend will be paid on August 4, 2008 to shareholders of record as of the close of business on July 25, 2008.

The full text of the press release issued in connection with the announcement is attached hereto as Exhibit 99.1 and is incorporated by reference.

Item 9.01. Financial Statements and Exhibits.

(d)	The following exhibit relating to Item 8.01 is furnished with this report on Form 8-K:
99.1	Press Release of MedQuist Inc. dated July 14, 2008

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MedQuist Inc.
Date: July 14, 2008	By:	/s/ Mark R. Sullivan
		Name:	Mark R. Sullivan
		Title:	General Counsel, Chief Compliance Officer & Secretary

EXHIBIT INDEX

Exhibit
Number		Description
	99.1	Press Release of MedQuist Inc. dated July 14, 2008

EX-99.1

Exhibit 99.1

MedQuist Announces Declaration of $2.75 per share Dividend on Common Stock

MOUNT LAUREL, N.J., July 14 /PRNewswire-FirstCall/ — MedQuist Inc. (Pink Sheets: MEDQ.PK) today announced that its board of directors declared a dividend of $2.75 per share on MedQuist’s common stock. The dividend will be paid on August 4, 2008 to shareholders of record as of the close of business on July 25, 2008.

Newcastle Partners, L.P., along with other holders of MedQuist’s common stock, have filed a shareholder derivative lawsuit in the Superior Court of New Jersey, Chancery Division, seeking, among other things, to enjoin the payment of a substantial dividend. Though the court denied Newcastle’s request for a temporary restraining order enjoining the declaration of the dividend, it has set July 31, 2008 as a date for a hearing regarding a preliminary injunction enjoining a substantial dividend. If the court issues the requested injunctive relief and the dividend declared by the board is enjoined, it will be paid on the first practicable business day following the lifting or expiration of the injunction.

About MedQuist:

MedQuist is the largest Medical Transcription Service Organization (MTSO) in the world, and a leader in technology-enabled clinical documentation workflow. MedQuist’s enterprise solutions — including mobile voice capture devices, speech recognition, Web-based workflow platforms, and global network of medical editors — help healthcare facilities improve patient care, increase physician satisfaction, and lower operational costs. For more information, please visit www.medquist.com.

Disclosure Regarding Forward-Looking Statements:

Some of the statements in this press release constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are not historical facts but rather are based on the company’s current expectations, estimates and projections regarding the company’s business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. The forward-looking statements contained in this press release include, without limitation, statements about the timing of the payment of the declared dividend and the hearing regarding a preliminary injunction enjoining a substantial dividend . These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict, including, without limitation, the risk that the settlement agreement is not consummated, the risk that the case is not dismissed with prejudice, and the risk of possible future claims against the company. For a discussion of these risks, uncertainties and assumptions, any of which could cause our actual results to differ from those contained in the forward-looking statement, see the section of the company’s Annual Report on Form 10-K for the year ended December 31, 2007, entitled “Risk Factors” and discussions of potential risks and uncertainties in the MedQuist’s subsequent filings with the Securities and Exchange Commission.

SOURCE MedQuist Inc.
07/14/2008
CONTACT: Kathleen Donovan, Chief Financial Officer of MedQuist Inc.
+1-856-206-4000
Web site: http://www.medquist.com
(MEDQ)