Semler Scientific Agrees to Pay DOJ $30M to Settle Fraud Investigation

Healthcare know-how agency Semler Scientific has reached a tentative settlement settlement with the U.S. Department of Justice (DOJ), disclosing in a Tuesday submitting that it was ready to pay a $29.75 million wonderful so as to settle all claims tied to potential violations of a federal anti-fraud legislation associated to its advertising and marketing of QuantaFlo, its flagship product.

Last month, Semler Scientific disclosed that it had acquired a civil investigative demand, or CID — basically, a subpoena from a federal company that sometimes precedes a lawsuit — from the DOJ again in 2017. In a submitting with the U.S. Securities and Exchange Commission (SEC) Semler Scientific stated it had complied with a number of subsequent subpoenas over the next years and started preliminary settlement discussions with the DOJ in February.

The investigation into Semler Scientific’s advertising and marketing of QuantaFlo is unrelated to its bitcoin holdings.

In its Tuesday 8-Ok submitting with the SEC, Semler Scientific — a big company holder of bitcoin — stated that it had inked an settlement with crypto alternate Coinbase permitting it to borrow each money and digital property, utilizing its bitcoin holdings as collateral. If the corporate’s settlement settlement with the DOJ is accredited, it stated within the submitting, Semler Scientific “intends to borrow under the Coinbase master loan agreement and use such proceeds (along with its cash on hand) to pay the proposed settlement with DOJ.”

Semler Scientific’s settlement settlement with the DOJ is in precept, which means that it’s not but set in stone. In its Tuesday submitting, the corporate warned buyers that if the events are unable to come to a last settlement, there may be nonetheless a danger that the DOJ may file prices in opposition to the corporate “seeking damages in excess of such agreed settlement amount.”

“Should the parties not be able to reach settlement and DOJ file a complaint, Semler Sci intends to vigorously defend itself in any such action,” the agency stated in its submitting.

Semler Scientific at the moment holds 3,192 bitcoins, a stockpile value roughly $267 million at at present’s value.