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Specialty Labs to Post 2nd-Quarter Loss

July 04, 2002|Bloomberg News

Specialty Laboratories Inc. said it will report a significant second-quarter loss because of job cuts and loss of revenue after federal regulators suspended its right to receive payments from Medicare or Medicaid.

Regulators charge that the company's laboratory testing was conducted by unlicensed staff and have fined the company $3,000 a day since Feb. 22.

The Santa Monica-based company said it will have $3.5 million to $3.8 million in second-quarter costs related to the job cuts. Specialty Laboratories last month fired about 10% of its 800 employees.

The company's shares rose $1.29, or 17%, to $8.81 on the New York Stock Exchange.

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