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said a search warrant was issued in connection with an investigation being conducted by the Justice Department regarding the company's physician services segment WebMD Medical Manager, and a $5.5 million financial restatement in 1999.

The company said in a press release Wednesday that it believes the search warrant was based on misleading information from two terminated employees who WebMD has sued for taking improper kickbacks.

According to a

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report, a WebMD office in New Jersey and two locations in Florida were searched by agents of the FBI and the IRS.

WebMD also said it doesn't think it has violated any laws. The company plans to fully cooperate with the authorities and doesn't expect that there will be any impact on its operations.

Shares of WebMD were halted for


trading at $10.20.