Federal Agents Raid 3 WebMD Offices

Federal agents raided three offices of WebMD Corp., a health information and transaction company.

The search warrant was issued in connection with an investigation by the Justice Department into a portion of the company’s physician services segment and $5.5-million 1999 financial restatement.

Agents raided WebMD’s Elmwood Park, N.J., headquarters as well as offices in Tampa and Alachua, Fla., a company spokeswoman said.

The company said it believed that the search warrant was based on misleading information from two terminated employees whom WebMD has sued for taking improper kickbacks.

WebMD has said it does not believe that it has violated any laws.

Trading in the company’s stock was halted on Nasdaq, the spokeswoman said.

From Associated Press