MRI company wins anti-trust case

Melville-based Fonar Corp. says it has won a significant court decision in an anti-trust jury trial focusing on diagnostic referrals for MRI services.

Fonar said the jury award is expected to reach $40 million.

Fonar was part of a lawsuit, along with plaintiffs who operated magnetic resonance imaging machines that allow patients to remain upright.

The defendant was CareCore National LLC, a health benefits management company. CareCore wrongfully denied its patients access to Fonar's line of MRI machines, Fonar said.

"After more than a two-week trial, the verdict was reached November 30, 2010 in the U.S. District Court for the Eastern District of New York. The case is Stand-Up MRI v. CareCore National, E.D.N.Y. Case No: 08 Civ. 2954 (LDW) (ETB)," Fonar said in a news release.

"The eight members of the jury were unanimous in their decision and awarded over $11 million in damages to the diagnostic service provider and the PCs in the case, which are to be trebled by law. The total judgment with costs and attorney fees is expected to be close to $40 million," Fonar said.

CareCore's chief executive, Don Ryan, said in a statement that the company was disappointed with the jury decision, and it will appeal.

"We continue to believe that we acted properly, in compliance with the law, and in the interest of quality cost effective health care," Ryan said. "We will pursue all available appeals and are confident that we will ultimately prevail.”

Shown above is Dr. Raymond Damadian with the prototype MRI stand up invented at the Fonar Corporation in Melville.

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