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Bio-Reference Laboratories, Inc. Announces Restitution Agreement with Former Employee

^{Published on 2009-01-26 10:59:00, Last Modified on 2009-01-26 10:59:41 - Market Wire}
 

ELMWOOD PARK, N.J.--([ BUSINESS WIRE ])--Bio-Reference Laboratories, Inc. (NASDAQ: BRLI) executed a Restitution Agreement with John Littleton, a former vice president in sales. Pursuant to the Agreement Mr. Littleton agreed to pay the Company $1,600,000 for payments made to Mr. Littleton and others that were, from the Company's perspective, improperly paid to Mr. Littleton or parties related to him as expense or fee reimbursements relating to a) recruiting fees for new hires paid to parties with an undisclosed relationship to Mr. Littleton in violation of the Company's policies and b) reimbursement to Mr. Littleton and others of improperly or insufficiently documented expenses, also in violation of the Company's policies.

Management regards this as an internal matter that has had no effect on the Company's clients or business. The amounts in question were not material to the Company's financial condition or operations in the years in question. It has been determined that no restatement of the Company's financial statements for prior years is required.

Pursuant to the Restitution Agreement, Mr. Littleton's employment with the Company was terminated for Cause, effective January 21, 2009. In addition, all Stock Options held by Mr. Littleton, exercisable to purchase 60,000 shares of the Company's common stock, were terminated and rescinded. Mr. Littleton continues to be subject to the provisions of his Key Employment Agreement. An 8K has been filed today.

About Bio-Reference Laboratories, Inc.

BRLI is the third largest full service laboratory in the United States and the largest independent laboratory in the Northeastern market, primarily a clinical testing lab servicing physician offices with concentrations in the focused markets of esoteric testing, molecular diagnostic, anatomical pathology and correctional health care. BRLI operates as a national oncology laboratory under its GenPath label. Better science, superior technology and better service have enabled GenPath to earn a reputation as one of the premier hematopathology laboratories in the country. GeneDx, a wholly owned subsidiary, is the BRLI genetics laboratory and is typically recognized as the leading laboratory for testing of rare genetic diseases; GeneDx has now become a technology leader with GenomeDx, based on a CGH array platform and its NextGen sequence offerings that are and will be disease specific.