DOJ Announces $4 Million Settlement in Case Involving Falsified Scientific Research

Within the scientific field, allegations of research impropriety are taken very seriously. When the leader of a biotechnology company was accused of falsifying parts of her doctoral dissertation, she was required to report this situation to certain government agencies. This did not happen, and as a result, her company was forced to pay a serious penalty while the man who blew the whistle on her walked away with a six-figure award. 

Athira Pharma Inc., a Washington State biotechnology company, is paying $4,068,698 to settle  a case alleging that it broke federal law failing to report allegations of fraudulent research to the National Institutes of Health (NIH) and the Department of Health and Human Services (HHS) Office of Research Integrity. This settlement addresses misconduct related to NIH grant applications and assurances made between January 1, 2016, and June 20, 2021.

The allegations center around Athira’s former CEO, Leen Kawas, who was accused of manipulating scientific images in her dissertation, as well as other published research papers. These doctored images were cited in multiple grant applications submitted to NIH, including one that led to funding for research into Alzheimer’s and Parkinson’s Disease. Despite being aware of the serious charges, Athira failed to report the allegations in numerous filings, including Annual Reports on Possible Research Misconduct.

Andrew J. Mallon, Ph.D. filed a qui tam lawsuit under the False Claims Act (FCA) citing the violations committed by Athira and Kawas. Accordingly, he received a payment of $203,434 for bringing the misconduct to the government’s attention. The FCA is a powerful tool for holding entities accountable when they mislead federal agencies. In this case, the failure to disclose allegations of research misconduct constituted a violation because it affected NIH’s ability to make informed decisions about funding allocation.

For whistleblowers aware of potential misconduct in federally funded projects, consulting with an experienced FCA attorney at Kardell Law Group is a good first step to help you understand the relevant legal process. We will examine the facts of your case and discuss whether you might be able to obtain payment by acting as relator in a qui tam action.