Celera Corporation Announces Settlement Agreement with Health Diagnostic Laboratory, Inc., Blue Wave Healthcare Consultants, Inc., and Former BHL Employees
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ALAMEDA, Calif.--(Business Wire)-- Celera Corporation (NASDAQ:CRA) today announced that Berkeley HeartLab, Inc., (BHL), a wholly-owned subsidiary of Celera, has entered into a Settlement Agreement with Health Diagnostic Laboratory, Inc. (HDL), Blue Wave Healthcare Consultants, Inc., as well as seven former BHL employees identified in litigation filed by BHL in the United States District Court for the Eastern District of Virginia. As previously announced, BHL filed this litigation and asserted a number of contractual, tort and statutory claims against the named parties, whose activities have been concentrated in the Southeast. The Settlement Agreement provides for the payment by HDL to BHL of an aggregate amount of approximately $7.0 million to be made in a series of payments in 2010 and 2011, with approximately $3.8 million to be paid in 2010 and the balance in 2011. The Settlement Agreement 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 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 Celera`s non-GAAP earnings. The Settlement Agreement contains prohibitions, effective until an agreed upon date during the first quarter of 2011, on HDL, Blue Wave and the individuals named in the litigation from performing lab testing services for healthcare providers that were BHL customers during the latter half of 2009. These restrictions do not apply to the agreed upon set of healthcare providers referenced in the paragraph above, each of whom used HDL`s lab testing services in the first two months of 2010, regardless of whether these providers were formerly served by BHL. HDL, Blue Wave and the individuals named in the litigation are also prohibited from soliciting or hiring BHL employees for a defined period, subject to certain agreed upon exceptions. The Settlement Agreement has been filed with the Court as part of a Consent Decree agreed to by the parties and entered by the Court. About Celera Celera is a healthcare business focusing on the integration of genetic testing into routine clinical care through a combination of products and services incorporating proprietary discoveries. Berkeley HeartLab, a subsidiary of Celera, offers services to predict cardiovascular disease risk and improve patient management. Celera also commercializes a wide range of molecular diagnostic products through Abbott and has licensed other relevant diagnostic technologies developed to provide personalized disease management in cancer. Information about Celera Corporation, including reports and other information filed by the company with the Securities and Exchange Commission, is available at http://www.celera.com. Forward-Looking Statements Certain statements in this press release are forward-looking. These may be identified by the use of forward-looking words or phrases such as "believe," "plan," "expects," and "could," among others. These forward-looking statements are based on Celera Corporation's current expectations. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. In order to comply with the terms of the safe harbor, Celera notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. These factors include but are not limited to: (1) competition in the healthcare and lab services industries is intense and evolving; and (2) other factors that might be described from time to time in Celera Corporation's filings with the Securities and Exchange Commission. The foregoing list sets forth some, but not all, of the factors that could affect Celera's ability to achieve results described in any forward-looking statements. For additional information about the risks and uncertainties that Celera faces and a discussion of its financial statements and footnotes, see documents filed by Celera with the SEC, including its transition report on Form 10-K and all subsequent periodic reports. All information in this press release is as of the date of the release, and Celera does not undertake any duty to update this information, including any forward-looking statements, unless required by law. Copyright© 2010. Celera Corporation. All Rights Reserved. Celera is a registered trademark of Celera Corporation or its subsidiaries in the U. S. and/or certain other countries. Celera Corporation David Speechly, Ph.D., 510-749-1853 David.Speechly@celera.com Copyright Business Wire 2010
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