Healthcare technology company Semler Scientific has reached a temporary settlement agreement with the U.S. Department of Justice (DOJ), and on Tuesday it is ready to pay a $29.75 million fine to resolve all claims related to any potential violations of the Federal v. Fullerd Act in connection with marketing of its flagship products.
Last month, Semler Scientific revealed that it received a private investigation demand from the DOJ in 2017, or a CID (a subpoena from a federal agency that essentially precedes the lawsuit) from the DOJ in 2017.
Semler Scientific’s Quantaflo marketing research is unrelated to Bitcoin Holdings.
In 8-K filing on Tuesday, Semler Scientific, a large corporate holder of Bitcoin, said it could borrow both cash and digital assets in an agreement with Crypto Exchange Coinbase using Bitcoin Holdings as collateral. If the company’s settlement agreement with DOJ is approved, Semler Scientific said in the filing that “we intend to borrow under the Coinbase Master Loan agreement and use such proceeds (with cash on hand) to pay the proposed settlement with DOJ.”
Semler Scientific’s settlement agreement with DOJ is principled, meaning that it has not yet been set on stone. In an application Tuesday, we warned investors that there is still a risk that the DOJ could file a claim against a company that “seeks for damages beyond the amount of such agreed settlement” if the parties are unable to reach the final agreement.
“If the parties reach a settlement and the DOJ fails to file a complaint, Semler Sci will be fiercely defending themselves in such a lawsuit,” the company said in its filing.
Semler Scientific currently holds 3,192 bitcoins. This is a stockpile worth around $267 million at today’s prices.
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