The world’s leading manufacturer of DNA sequencing systems will pay $9.8 million to resolve allegations that it knowingly sold products with security vulnerabilities to federal agencies, Rhode Island’s Acting U.S. Attorney Sara Miron Bloom announced Thursday.

The settlement avoids a lengthy court battle for biotech manufacturer Illumina by ending a 2023 suit filed in U.S. District Court for the District of Rhode Island by whistleblower Erica Lenore, a former platform management director at the San Diego company who raised concerns about product security and was eventually let go.

The $9.8 million settlement allocates $1.9 million to Lenore for initiating the suit and cooperating with federal agencies. Another $4.3 million is specifically labeled as restitution for the government. The company also needs to pay 4.33% interest on the settlement money, backdated to March 2025.

The settlement text does not specify how the remaining funds are broken down. The court case, which has now been dismissed and unsealed, rested upon the False Claims Act, which allows for prosecution of people and companies who knowingly defraud the government. False Claims settlements typically include money for other penalties or court fees.

The settlement resolves the government’s civil allegations, and the government has not filed any criminal charges against Illumina, although the settlement allows for future legal action. A separate agreement settles Lenore’s personal civil claims.

According to...

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