A pharmaceutical company in Bothell has agreed to pay $4,068,698 to settle allegations it used falsified research to obtain grants from the National Institutes of Health (NIH), according to the Department of Justice.
The company, Athira Pharma, is accused of failing to disclose that its former CEO had committed research misconduct.
The research in question focused on age-related cognitive decline, such as Alzheimer’s disease.
The U.S. Attorney for the Western District of Washington, Tessa M. Gorman, stated that when applying for federal funding, Athira did not inform NIH about allegations that its then-CEO had falsified images in her doctoral dissertation.
Those images were included in the research used to support the grant applications.
According to court documents, the company failed to disclose that its former CEO, Leen Kawas, manipulated scientific images in her doctoral dissertation and in published research used to support grant applications submitted to the NIH.
Athira allegedly violated its regulatory obligations to disclose the allegations, including in grant applications, progress reports, and statements of research conduct, between January 1, 2016, and June 20, 2021.
The allegations came to light through a qui tam lawsuit filed by Andrew P. Mallon, Ph.D. As a whistleblower under the False Claims Act. Mallon will also receive $203,434 from the settlement.
“The research into neurological disorders such as Alzheimer’s and Parkinson’s Disease is critical to growing numbers of patients in our community. That research must not be tainted by the misconduct highlighted in this case,” U.S. Attorney Gorman stated.
She added that Athira immediately notified NIH of the research misconduct once its full board of directors learned of it, stating that the company’s transparency “significantly helped Athira mitigate its damages and demonstrated its resolve towards coming into compliance with the relevant law and regulations.”
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said the settlement shows that the department “will pursue grantees that undermine the integrity of federal funding decisions.”
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