Millennium Health LLC agreed to pay $256 million to resolve claims that it misrepresented the need for procedures and offered gifts to doctors in exchange for referrals, Bloomberg News reported yesterday. The biggest U.S. lab-testing company now plans to file for bankruptcy protection by Nov. 10, enabling it to turn over control of the business to its lenders. The company has given the restructuring proposal to the holders of its $1.8 billion term loan and sent a copy to lawyers at the U.S. Department of Justice who are handling the settlement of the government’s case. Millennium will need to file its chapter 11 petition with a bankruptcy court by Nov. 10, according to copies of resolved cases against the company that were unsealed yesterday.
