NEW YORK(GenomeWeb) – Health Diagnostic Laboratory announced late on Wednesday that a US Bankruptcy Court judge has approved the $37.1 million sale of substantially all of the firm's assets to True Health Diagnostics.
The deal is anticipated to be completed by the end of the month. Frisco, Texas-based True Health outbid other firms for HDL's assets in an auction held last week after increasing its initial stalking horse bid of $32 million made earlier this month.
Richmond, Virginia-based HDL filed for Chapter 11 protection in June shortly after reaching an agreement with the US Department of Justice to settle an investigation into whether HDL's payments to doctors were essentially kickbacks to encourage them to order the firm's tests. HDL agreed to pay nearly $50 million as part of the settlement but denied wrongdoing.
True Health CEO Chris Grottenthaler said in a statement on Tuesday that the firm will adopt "an exacting corporate compliance program that, along with rigorous controls and intensive sales force training, will ensure that True Health will meet and exceed all regulatory requirements."