February 11, 2025

Athira Pharma Agrees to Pay $4 Million to Settle False Claims Act Allegations Over Scientific Research Misconduct: The Vital Role of Whistleblowers in Exposing Fraud in Healthcare and Research

Athira Pharma Inc., a biotech company based in Bothwell, Washington, has agreed to pay $4.06 million to resolve allegations related to the False Claims Act (FCA) for not disclosing research misconduct. The case stems from actions by the company's former CEO, Leen Kawas, who allegedly falsified and manipulated scientific images in her doctoral dissertation and in published research papers used in NIH grant applications. Between 2016 and 2021, Athira failed to properly report these allegations of scientific misconduct to the National Institutes of Health (NIH) and the Department of Health and Human Services (HHS) Office of Research Integrity.

Allegations of Scientific Misconduct

The settlement resolves allegations that the company violated regulations requiring them to report allegations of falsified and manipulated images to the NIH in grant applications and other research reports. The misconduct was discovered after the board of directors was informed, and while Athira took steps to notify NIH, the failure to disclose the allegations on time led to the $4 million settlement.

Importance of Whistleblowers in Exposing Research Fraud

This case highlights the crucial role whistleblowers play in uncovering scientific misconduct, particularly in federally funded research. Dr. Andrew P. Mallon, the whistleblower in this case, filed a qui tam action under the False Claims Act, which allowed him to bring the allegations to light on behalf of the United States. As a result, Mallon received $203,434 as part of the settlement. This is an important reminder of the power and significance of whistleblowers in combating fraud and ensuring the integrity of scientific research.

The Need for Transparency in Healthcare and Research

The Athira Pharma case serves as a reminder that transparency is vital in research, particularly when public funds are involved. The misconduct undermined public trust in taxpayer-funded scientific research, which is essential for advancing critical research on neurological disorders such as Alzheimer’s and Parkinson’s disease. It also demonstrates the ongoing efforts by government agencies to uphold the integrity of healthcare and research.

How Whistleblowers Can Help Combat Fraud

Whistleblowers like Dr. Mallon are essential in exposing fraud, waste, and abuse within both the healthcare and scientific research sectors. If you have information about similar misconduct or fraud, you can take action to protect public trust and taxpayer dollars. The Philadelphia Whistleblower Advocates offer free, confidential consultations to individuals who wish to report fraud. Contact them today for legal support and to learn more about how you can play a role in stopping fraud and corruption.

 

Source: https://www.justice.gov/opa/pr/athira-pharma-inc-agrees-pay-4m-settle-false-claims-act-allegations-related-scientific?link_id=11&can_id=f87aac00a044a0da0c451889dc4f075a&source=email-cftc-risks-running-out-of-money-to-pay-whistleblowers-their-cut&email_referrer=email_2578456___from_3106755&email_subject=fraud-in-america-how-whistleblowers-are-uncovering-ppp-fraud

This article is a news article for informational purposes only. The Whistleblower Advocates did not represent the parties identified in the story above.

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