Cerner, Trinity Settlement Totals $106M

Electronic health record giant Cerner paid a settlement of approximately $106 million to Trinity Medical Center in Minot, N.D., to resolve allegations purchased software did not function as promised, according to Cerner's recent filings with the U.S. Securities and Exchange Commission.

Trinity's suit against Cerner, instigated in 2012, alleged the patient accounting software the hospital purchased from Cerner in 2008 was defective and did not deliver the expected business benefits.

Trinity originally sought $240 million in damages, while Cerner estimated damages should total around $4 million. The final amount was arbitrated in later 2013, but the total settlement amount had not been previously disclosed.

Cerner took the $106 million settlement as a charge against its fourth quarter earnings.

When a settlement was reached, Cerner stated it disagreed with the amount awarded and noted the settlement is "the only material judgment against Cerner in its 34-year history." According to the SEC filings, Trinity continues to use Cerner products for its clinical solutions.

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