U.S. District Judge Nathaniel M. Gorton granted $391,125.33 to a whistleblower this past week in the wake of a settlement agreement between the government and the electronic health record vendor athenahealth.
In January 2021, the U.S. Department of Justice announced that athenahealth had agreed to pay $18.25 million to settle False Claims Act violation allegations. Now, the company is on the hook for additional hundreds of thousands of dollars in attorneys' fees.
Athenahealth declined requests for comment.
WHY IT MATTERS
According to court documents, in October 2017, Geordie Sanborn filed a qui tam lawsuit – which allows an individual, known as a "relator," to prosecute a lawsuit for the government and receive a reward – against athenahealth, accusing it of violating the False Claims Act and the federal anti-kickback statute.
Two months later, two more relators did the same.
The complaint focused on allegations around athenahealth's client referral program and other "gratuities and incentives" – including tickets to sporting events, casino chips, hotel accommodations and more – to sweeten sales of its EHR product.
The government's settlement agreement, reached this past January, allowed relators to seek "reasonable expenses," costs and attorneys' fees from athenahealth in addition to their percentage of the claim payout.
However, the FCA limits that entitlement to the first relator to file – meaning only Sanborn would get the funds.
Sanborn's complaint included an...
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