September 3, 2010
Law360 reported that Laboratory Corp. of American has filed a complaint against Cardinal Health Systems Inc. and its affiliates, claiming breach of a noncompetition agreement in connection with LabCorp's $74 million purchase of PA Labs LLC.
LabCorp seeks a preliminary and permanent injunction barring Cardinal Health, Ball Memorial Hospital, Clarian Health Partners and Clarion Pathology Laboratories from engaging in laboratory businesses in violation of a noncompete agreement, breach of contract and breach of the duty of good faith and fair dealing.
LabCorp asserts that following the merger, the defendants began violating the noncompetition agreement by assisting heath care facilities in the prohibited geographical area, operating at least 14 patient service centers and soliciting business in the territory.
Partner Robert I. Steiner is representing LabCorp in this matter.