Lawyers for Health Diagnostic Laboratory Inc. are preparing to hold a Sept. 10 auction to sell the Virginia lab's operations, which struggled after health regulators accused the company of paying illegal kickbacks to physicians who send blood samples, Dow Jones Daily Bankruptcy Review reported today. In a court order signed on Wednesday, Bankruptcy Judge Kevin Huennekens set a Sept. 4 bid deadline for potential buyers interested in the Richmond company, which employs about 645 people who help test for cardiovascular diseases like diabetes. Health Diagnostic Laboratory filed for bankruptcy on June 7, several months after agreeing to pay nearly $50 million to settle civil allegations filed by the U.S. Department of Justice that it paid to doctors who sent patient blood samples. Justice Department officials said the fees were illegal kickbacks; the company has denied wrongdoing.
