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A second strategic partner filed a breach of contract lawsuit against WebMD Corp. as the company struggles to restructure its network of strategic alliances. InfoCure Corp. filed a civil suit March 8 in Georgia’s Superior Court of the County of Fulton seeking at least $46.5 million for breach of contract and “tortuous interference with business relations,” according to documents filed with the Securities and Exchange Commission. The complaint alleges WebMD failed to pay a $1.5 million rebate due under the partnership agreement with WebMD’s Envoy Corp. unit. On Jan. 24, 2000 WebMD agreed to acquire Envoy, the largest provider of transaction-processing services that link doctors and insurers, from Quintiles Transnational Corp. for $840 million. Under terms of a modified agreement signed after the merger was announced, InfoCure was entitled to a rebate when claims were sent to insurance companies paying WebMD’s prevailing rate. The two sides cannot agree on which claims are entitled to a rebate. InfoCure also claims WebMD salespeople have spread false statements about InfoCure’s financial solvency. InfoCure makes desktop software to manage patient records and billing information. WebMD subsequently acquired InfoCure’s largest physician management software competitor, Medical Manager Corp. In September, Martin Wygod, former CEO at Medical Manager, was tapped to lead WebMD and announced plans to terminate many of strategic partnerships signed by the previous management team. On Feb. 23 Quintiles filed a lawsuit against WebMD Corp. for breach of contract. InfoCure has retained Holland & Knight and New York-based Caldwalder, Wickersham & Taft for legal counsel. Copyright (c)2001 TDD, LLC. All rights reserved.

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