A Medical Device Daily Staff Report

Celera (Alameda, California) said that its subsidiary, Berkeley HeartLab (BHL; San Francisco), has reached a $7 million settlement agreement with Health Diagnostics Laboratory (HDL; Richmond, Virginia), Blue Wave Healthcare Consultants, and seven former BHL employees for soliciting BHL client healthcare providers to refer patients to HDL.

Celera said that about $3.8 million of the $7 million settlement will be paid this year and the rest will be paid in 2011. BHL had filed the lawsuit in the U.S. District Court for the Eastern District of Virginia.

The settlement also provides for HDL to pay BHL an additional amount in 2011 based on samples HDL receives during 2010 from an agreed upon set of healthcare providers. Celera says it expects to record all payments from HDL as a separate line item under legal settlements in the periods when received and these amounts will be excluded from the company's non-GAAP earnings.

Also under the agreement, HDL, Blue Wave and the former BHL employees named in the suit are prohibited from performing lab testing services for healthcare providers that were BHL customers during the latter half of 2009. They are also prohibited from soliciting or hiring BHL employees for a defined period, subject to certain agreed upon exceptions, the company noted.

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