The purchase of Santa Ana-based Westcliff Medical Laboratories Inc. by Laboratory Corporation of America can go through over regulatory objections, a federal judge has ruled.
U.S. District Judge Andrew Guilford in Santa Ana denied a challenge by the Federal Trade Commission to LabCorp’s $57.5 million buy of Westcliff, according to a Bloomberg report.
The FTC had argued in court that the deal would harm medical laboratory competition in Southern California.
In December, the FTC had filed for an injunction to prevent Burlington, N.C.-based LabCorp from buying Westcliff, arguing that it would lead to higher prices and lower quality in the market.
Westcliff, whose laboratories process blood and urine samples, filed for bankruptcy protection last May and said in a court filing that it was planning to sell its assets to LabCorp.
In 2005, LabCorp bought US Labs Inc., an Irvine cancer testing laboratory, for $155 million.
