Fired workers sue health data firm

PANAMA CITY — Two fired employees of NantHealth have filed a lawsuit alleging they lost their jobs after objecting to illegal practices.

Stephanie Davidson and William Lynch filed the lawsuit in Panama City against the NantWorks subsidiary in U.S. District Court of Northern Florida in January. They allege, in part, that the company engaged in fraudulent practices that could have devalued the company’s stock and ended its initial public offering.

NantHealth belongs to a network of companies, including a Panama City location, owned by billionaire Dr. Patrick Soon-Shiong that have gathered to improve healthcare data sharing and computerized decision making, particularly related to cancer care.

A NantHealth executive described the suit as part of an attempt to extort money from the company.

“The allegations made by this couple are completely false and belied by written statements made by one of them in an email shortly before the filing of the lawsuit,” said Steve Curd, COO of NantHealth. “We believe it is also telling that this lawsuit was filed after NantHealth turned down a demand by the plaintiffs for $2 million, with an accompanying threat that unless NantHealth paid, they would launch a smear campaign filled with false and trumped up allegations.”

Curd added that both of the employees were fired for “improper behavior” and indicated a counter-suit could be filed in the future.

“The company will vigorously defend against these false allegations and will take all legal actions necessary to protect against false and libelous claims made,” he said.

The lawsuit also alleges that Davidson, a former senior vice president, and Lynch, a former senior marketing director, were fired after voicing their objections about certain activities to their superiors and others. The pair claimed that the company’s products did not perform as their marketing materials and labels claimed. They also alleged that the products posed “significant patient safety, compliance and security risks.”

The company paid for a mock Food and Drug Administration audit that raised a number of issues, including that, “although it may seem that your product cannot create risk to the patient, if a customer misuses the device, it could cause a hazard to health and these issues are reportable to the FDA ...,” the complaint claims.

The lawsuit alleges that NantHealth illegally used federal Centers for Medicare & Medicaid Services (CMS) money through a joint venture with Phoenix Children’s Hospital and the city of Phoenix.

“By way of example, (NantHealth’s) foundation would donate 10 million dollars into the joint venture, which would then use that money to obtain matching funds from CMS of 30 million dollars,” according to the lawsuit. “In return, the joint venture agrees to purchase products and services from Defendants.”

Davidson and Lynch claimed to have left substantial positions to join NantHealth. They are seeking damages for mental anguish and loss of dignity, lost wages and lawyer fees.

NantHealth’s office in Panama City, formerly known as iSirona, employs more than 200 people.

“We are deeply focused on helping patients with life-threatening ailments such as cancer and are exceptionally proud of our nearly 200 colleagues in the Panama City area,” Curd said. “We applaud their integrity and devotion to delivering outstanding products and services.”