Celera Corporation Announces Settlement Agreement with Health Diagnostic Laboratory, Inc., Blue Wave Healthcare Consultants, Inc., and Former BHL Employees

* Reuters is not responsible for the content in this press release.

Thu Apr 22, 2010 6:27pm EDT

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

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.