POSTED ARTICLE DATED16 Feb 10 LabCorp Reports Profits But Its Future Remains Cloudy
Laboratory Corporation of America (LabCorp – New York Stock Exchange Symbol LH) recently reported an increase in fourth-quarter net earnings to $242.7 million, as compared to $90.1 million for the 4th quarter of 2008. The increase in earning were due partly to a gain of $121.5 million from resolving state tax issues and realizing foreign tax credits.
LabCorp’s total revenues for the fourth quarter rose to $2.17 billion, up from $1.92 billion the year before. For the full year, the company had profits of $943.3 million, up from earnings of $864.5 million in 2008. The increase also includes all the income from the labs that Labcorp has acquired.
Labcorp also announced that it will be spending $450 Million to buy back shares of their own stock. Labcorp’s Chairman and CEO DK said “ We remain optimistic about the growth opportunities that lie ahead for us in 2010, and we are well positioned to capitalize on them.” I highlight the word lie because while he was making the statement, he was filing with the Securities and Exchange Commission that he had just sold shares of LabCorp stock and pocketed over $171,960 in profits. You would think that when the head of a company announces positive results and claims to be “optimistic about the growth opportunities” he would be buying stock, not selling it.
One thing that LabCorp CEO Dk didn’t boast about is that of a rumored investigation of LabCorp by the US Department of Labor, Employment Standards Administration, Office of Federal Contract Compliance Program. According to posts in CafePharma.com, LabCorp’s Florida operations are in trouble. They had to settle an employment lawsuit at a rumored cost of about $1.1 Million. In addition, they have a pending Federal lawsuit from a former employee that has not gone too well for them. With allegations of witness tampering and obstruction of justice, LabCorp has had to fire the law firm that was handling the case. The posts include the following:
OFCCP would like to hear from those who have been discriminated against based on a protected characteristic. (personal info removed) A formal recommendation has been made for an investigation of LCA Florida. Those who aren’t afraid to get their hands dirty, write:
US Department of Labor
Employment Standards Administration
Office of Federal Contract Compliance Program
Attention Dave King
Corporate Office
358 South Main Street
Burlington, NC, 27215
SUBJECT: LABCORP CONDUCT IN FLORIDA.