Although False Claims Act cases involving federal grant fraud may not be as common as those involving healthcare fraud, the consequences of such cases can be just as significant.
Recently, Athira Pharma, a Washington state-based biopharmaceutical company, agreed to pay over $4 million to resolve allegations that they violated the FCA by relying on falsified academic papers to obtain federal grants.
Athira had received funds from the National Institute of Health for an Alzheimer’s study. According to the DOJ, when applying for the NIH grant, Athira failed to notify the NIH of allegations that its former CEO had falsified and manipulated scientific images in various research papers, including ones that were referenced in NIH grant applications. The DOJ alleged that such failure violated Athira’s obligations to report such misconduct under NIH regulations.
The matter was brought to the DOJ’s attention through a qui tam whistleblower lawsuit. The whistleblower is set to receive over $200,000 for filing the case.
The attorneys at Chilivis Grubman represent businesses and individuals in connection with False Claims Act investigations and litigation. If you need such representation, please feel free to contact us today.
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