A Bothell-based biopharmaceutical company is digging into its pockets for a hefty sum after allegations surfaced that it used falsified academic research to secure grants from the National Institutes of Health. The U.S. Attorney for the Western District of Washington, Tessa M. Gorman, announced that the company, Athira Pharma, has agreed to a settlement of $4,068,698. According to the Justice Department's statement, the company allegedly failed to report that its former CEO had committed research misconduct by fabricating images in her doctoral dissertation.
The importance of credible research, especially in fields dealing with neurological conditions such as Alzheimer's and Parkinson's, cannot be overstated. "That research must not be tainted by the misconduct highlighted in this case," Gorman emphasized in a statement released by the Justice Department. Athira, upon full board discovery of the misconduct, did not waste time in bringing the issue to the NIH's attention, which Gorman acknowledged as significantly aiding in their efforts to mitigate damage and comply with legal and regulatory standards.
Principal Deputy Assistant Attorney General Brian M. Boynton also weighed in, highlighting the foundation of trust and ethical conduct that underpins collaborations between the science community and the government. "Today’s settlement demonstrates that the Department of Justice will pursue grantees that undermine the integrity of federal funding decisions," he stated, as reported by the Justice Department.
The settlement covers the period between January 1, 2016, and June 20, 2021, addressing specific accusations that Athira neglected its duty to disclose misconduct allegations in grant applications and reports. This omission, pertaining to the work of its former CEO, Leen Kawas, compromised several of the company's NIH grant applications, one of which was funded in 2019. The allegations were brought into the open thanks to a whistleblower lawsuit led by Dr. Andrew P. Mallon, who under the qui tam provisions of the False Claims Act, will receive $203,434 from the settlement.
The Justice Department's strong stance on healthcare fraud is reflected in their resolve in bringing this matter to a close, made possible by a coordinated effort involving multiple divisions and offices, including the Commercial Litigation Branch's Fraud Section and the Department of Health and Human Services' Office Inspector General. Tips regarding potential healthcare fraud are taken seriously, with the HHS urging the public to report any suspicions to their hotline.
Handling the case from the legal side were Assistant U.S. Attorney Nickolas Bohl from the Western District of Washington and Trial Attorney Erin Colleran. Although the settlement concludes these particular allegations, the Justice Department has made no determination of liability regarding the claims.
