Millennium Health LLC’s chapter 11 plan was confirmed on Monday, but it was almost immediately challenged with an appeal from Voya Investment Management, the Wall Street Journal reported today. Voya, formerly ING’s U.S. arm, is one of dozens of financial institutions that bought into a nearly $1.8 billion financing for Millennium in April 2014. A little over a year later, the drug-testing company revealed it was threatened with the loss of the right to bill government-funded programs due to fraud accusations from the Justice Department. Voya didn’t buy into the chapter 11 plan that was designed to provide funds to pay Millennium’s settlement with regulators. The lender is seeking a fast trip to federal appeals court to argue the plan unfairly blocks Voya’s right to sue Millennium’s departing owners. During confirmation hearings last week, Millennium and the lenders that supported the plan said repeatedly that the company’s survival is on the line. If Millennium can’t come up with funds to cover a $256 million settlement of the fraud charges by Dec. 30, the Justice Department could move to strip the laboratory testing company of its government billing privileges, lawyers said.
