Athenahealth faces trades secrets suit

EHR vendor Athenahealth is facing a lawsuit that alleges the company stole trade secrets, used deceptive business practices and breached its contract, Law360 reported July 20. 

Digital health startup Dorsata filed a lawsuit July 19 in the civil court of Suffolk County, Mass., against the company and against women's health company Unified Women's Healthcare.

The lawsuit alleges that in 2021, Unified purchased an existing client of Dorsata and then after the acquisition, Athenahealth asked Dorsata if the two entities would work together to create an integrated solution to pitch to Unified.

According to Dorsata, after signing a nondisclosure agreement, it provided trade secrets to the EHR vendor and made oral agreements to approach Unified as a joint venture.

Dorsata alleges that it developed a software and said Athenahealth agreed the two companies would pitch it together to Unified. 

The company alleges that Athenahealth was creating its own version of the tool to pitch to Unified behind its back and that Dorsata was cut out of the deal with Unified. 

The company filed nine counts against Athenahealth alleging unfair and deceptive acts and practices, breach of oral contract, breach of fiduciary duty, common law fraud, unjust enrichment, theft of trade secrets, tortious interference with current customers, breach of nondisclosure agreement, and commercial disparagement. 

Athenahealth told Becker's that the suit is "without merit," and that the company plans to "defend ourselves vigorously."

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