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ARTICLE · 16 JANUARY 2025

Athira Pharma Inc. Agrees To Settle False Claims Act Allegations

Bass, Berry & Sims PLC
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On January 6, the Department of Justice (DOJ) announced that Athira Pharma Inc., a Washington-based biopharmaceutical company, agreed to pay over $4 million to settle allegations it violated the False Claims Act (FCA).

United StatesGovernment, Public Sector
Richard W. Arnholt
Richard W. Arnholt

On January 6, the Department of Justice (DOJ) announced that Athira Pharma Inc., a Washington-based biopharmaceutical company, agreed to pay over $4 million to settle allegations it violated the False Claims Act (FCA). The DOJ alleges Athira failed to report allegations of research misconduct in its grant applications, award progress reports, and assurances. The settlement serves as a reminder to companies performing on grants that the Department of Health and Human Services (HHS) takes allegations of research misconduct seriously and grantees must closely adhere to regulatory requirements related to disclosing such allegations.

The Misconduct

Between April and July 2016, Dr. Andrew Mallon, the plaintiff relator and a PhD scientist, detected what he believed to be falsified data in several research papers published by Leen Kawas, Athira's former CEO while serving as an expert reviewer on Emerging Technologies and Training in Neurosciences IRG – ETTN. Dr. Mallon

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