HDL, headquartered on 5th Street, is working through a federal investigation into its payments of doctors.
The bad blood between a downtown medical lab company and its longtime sales contractor is spilling over into Richmond federal court.
Locally based Health Diagnostic Laboratory filed a lawsuit Wednesday against the two founders of BlueWave Healthcare Consultants, an Alabama firm that until last week had provided the bulk of HDL’s sales force in recent years.
The case comes less than a week after BlueWave filed a $205 million suit of its own in Alabama federal court claiming that HDL terminated a 10-year sales agreement five years too early, entitling BlueWave to substantial restitution.
HDL’s suit further illustrates how both sides appear to be attempting to cast blame on one another over potential violations of federal law.
A federal investigation into HDL and four other laboratory companies has been ongoing since at least mid-2014, questioning the legality of fees the companies paid to doctors who used their services and whether those fees could be considered kickbacks.
A Wall Street Journal report this week said HDL has entered into settlement talks with the Justice Department.
HDL claims in its suit that it uncovered potentially illegal sales procedures in its agreement with BlueWave and ended the agreement in order to ensure compliance with the law.
HDL says that on Dec. 22, 2014, it notified BlueWave that it had determined “certain compensation components of the sales agreement posed a risk of violating federal and state law.”
But it claims BlueWave’s founders Cal Dent and Brad Johnson wouldn’t agree to renegotiate the contract, which was originally signed in 2010. HDL terminated the agreement on Jan. 9, after which BlueWave swiftly responded with a lawsuit.
“Johnson and Dent put their economic interests ahead of compliance,” HDL claims in its suit.
HDL is at least the second national lab company under investigation to abruptly part ways with BlueWave. Singulex terminated its contract with BlueWave in October 2014, the company previously announced.
Attorney John Galese of law firm Galese & Ingram, which is representing BlueWave, said he is aware that HDL is claiming BlueWave was responsible for establishing the possibly illegal fees.
Galese said that HDL came to BlueWave with a legal opinion that the fees were lawful and an audit from an independent entity ensuring BlueWave that the fees were consistent with the costs of processing for doctors.
HDL says in its suit that it is trying to prevent Johnson and Dent from competing against it, using its confidential information and damaging its business after the two sides severed their relationship last week.
HDL argues in its case that it needs the court to step in with an injunction to enforce non-compete, confidentiality and non-solicitation agreements that Johnson and Dent allegedly signed as part of an HDL shareholder agreement.
The two own approximately 1.5 percent of HDL’s stock, according to Wednesday’s suit.
When asked to comment on HDL’s suit, attorney Jeff Ingram, also with Galese & Ingram, said the claims that Johnson and Dent are in violation of the shareholders agreement “are just not accurate.”
He said HDL’s claim that Johnson and Dent refused to renegotiate the sales agreement is also false. BlueWave had responded to HDL’s negotiation requests before the contract was terminated on Jan. 9, Ingram said.
In a recent statement, HDL said that it will build its own sales force to replace the work previously done by BlueWave. In November, HDL laid off 132 people. HDL also recently cut back on the amount of charitable donations it gives to local organizations.
Still on HDL’s legal plate is a battle with national insurer Cigna, which is seeking $84 million in damages.
HDL has yet to respond to BlueWave’s suit in Alabama. It declined to comment on its case beyond what’s in the court filings.
BlueWave’s response to HDL’s case will be due in the coming weeks.
HDL, headquartered on 5th Street, is working through a federal investigation into its payments of doctors.
The bad blood between a downtown medical lab company and its longtime sales contractor is spilling over into Richmond federal court.
Locally based Health Diagnostic Laboratory filed a lawsuit Wednesday against the two founders of BlueWave Healthcare Consultants, an Alabama firm that until last week had provided the bulk of HDL’s sales force in recent years.
The case comes less than a week after BlueWave filed a $205 million suit of its own in Alabama federal court claiming that HDL terminated a 10-year sales agreement five years too early, entitling BlueWave to substantial restitution.
HDL’s suit further illustrates how both sides appear to be attempting to cast blame on one another over potential violations of federal law.
A federal investigation into HDL and four other laboratory companies has been ongoing since at least mid-2014, questioning the legality of fees the companies paid to doctors who used their services and whether those fees could be considered kickbacks.
A Wall Street Journal report this week said HDL has entered into settlement talks with the Justice Department.
HDL claims in its suit that it uncovered potentially illegal sales procedures in its agreement with BlueWave and ended the agreement in order to ensure compliance with the law.
HDL says that on Dec. 22, 2014, it notified BlueWave that it had determined “certain compensation components of the sales agreement posed a risk of violating federal and state law.”
But it claims BlueWave’s founders Cal Dent and Brad Johnson wouldn’t agree to renegotiate the contract, which was originally signed in 2010. HDL terminated the agreement on Jan. 9, after which BlueWave swiftly responded with a lawsuit.
“Johnson and Dent put their economic interests ahead of compliance,” HDL claims in its suit.
HDL is at least the second national lab company under investigation to abruptly part ways with BlueWave. Singulex terminated its contract with BlueWave in October 2014, the company previously announced.
Attorney John Galese of law firm Galese & Ingram, which is representing BlueWave, said he is aware that HDL is claiming BlueWave was responsible for establishing the possibly illegal fees.
Galese said that HDL came to BlueWave with a legal opinion that the fees were lawful and an audit from an independent entity ensuring BlueWave that the fees were consistent with the costs of processing for doctors.
HDL says in its suit that it is trying to prevent Johnson and Dent from competing against it, using its confidential information and damaging its business after the two sides severed their relationship last week.
HDL argues in its case that it needs the court to step in with an injunction to enforce non-compete, confidentiality and non-solicitation agreements that Johnson and Dent allegedly signed as part of an HDL shareholder agreement.
The two own approximately 1.5 percent of HDL’s stock, according to Wednesday’s suit.
When asked to comment on HDL’s suit, attorney Jeff Ingram, also with Galese & Ingram, said the claims that Johnson and Dent are in violation of the shareholders agreement “are just not accurate.”
He said HDL’s claim that Johnson and Dent refused to renegotiate the sales agreement is also false. BlueWave had responded to HDL’s negotiation requests before the contract was terminated on Jan. 9, Ingram said.
In a recent statement, HDL said that it will build its own sales force to replace the work previously done by BlueWave. In November, HDL laid off 132 people. HDL also recently cut back on the amount of charitable donations it gives to local organizations.
Still on HDL’s legal plate is a battle with national insurer Cigna, which is seeking $84 million in damages.
HDL has yet to respond to BlueWave’s suit in Alabama. It declined to comment on its case beyond what’s in the court filings.
BlueWave’s response to HDL’s case will be due in the coming weeks.