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Whistleblower Lawsuit Accuses Health Tech Firm of Making Fraudulent Claims Concerning its Software

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Lawsuit Accuses Health Tech Firm - Fraudulent Software

Lawsuit Accuses Health Tech Firm – Fraudulent Software


Two former executives of the health technology firm NantHealth are accusing the company of making fraudulent claims about the reliability of its system.

The former executives filed a lawsuit this week accusing NantHealth of making the fraudulent claims, as well as charges that the company, which links patient information gathered by different medical devices and pieces of hospital equipment, of using company donations to attract federal funds so a hospital could buy its products, according to The New York Times (Times).

The whistleblowers’ wrongful-termination lawsuit was filed Wednesday in a federal court in Panama City, Florida. NantHealth responded in a statement viewed by the Times by saying the two ex-employees had demanded $2 million to prevent them from maligning the company with bogus information.

“The company will vigorously defend against these false and libelous allegations,” NantHealth, which is based in Culver City, Calif., said.

NantHealth is owned by Dr. Patrick Soon-Shiong, a billionaire surgeon and business entrepreneur who is part owner of the Los Angeles Lakers basketball team. This is not the first time his business relationships have come under scrutiny. In a Times investigation a decade ago, the publication found that a little-known drug company then headed by Dr. Soon-Shiong  had a financial relationship with Premier, a major purchaser of supplies for hospitals across the country that was supposed to be free of such engagements.

The whistleblowers said NantHealth hired them in 2014 in connection with the company’s planned initial sale of public stock. The two soon discovered that the company’s medical data gathering system underperformed and that NantHealth’s claims about it were fraudulent and misleading, the Times reported.

Last year, a company-sponsored review found that NantHealth’s system was “10 years behind in technology capabilities,” the lawsuit stated. Separately, an executive of one hospital that used the system was so frustrated by its performance that he threatened to terminate its use and alert other hospitals to the problem, according to the Times.

breakinglawsuitnews.com disclaimer: This article: Whistleblower Lawsuit Accuses Health Tech Firm of Making Fraudulent Claims Concerning its Software was posted on Tuesday, January 20th, 2015 at 3:40 pm at breakinglawsuitnews.com and is filed under Fraud Lawsuits.

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