Software company hit with $1B lawsuit

A lawsuit was filed in New York against electronic health records vendor eClinicalWorks for the failure to protect millions of patients’ records.

The monetary demand of the lawsuit totals just under $1 billion. This came six months after eClinicalWorks settled to pay a $155 million False Claims Act lawsuit.

The previous lawsuit was filed after several allegations were made that eClinicalWorks had lied about its software’s capabilities and had paid kickbacks to certain customers in exchange for promoting its allegedly faulty product.

This nearly $1 billion lawsuit is claiming that the vendor obtained a false certification for the software that didn’t adequately protect patient data.

Since the software company had lied to the federal government, it had been backed by federal regulations which may explain the hefty price tag.

Over 850,000 companies used the software to track patient data and user actions taken in the software, but the accuracy of these records has been compromised, putting patient lives at risk with false health information.