Nomi Health admitted that it breached its contract with software developer OSGHD by creating its own digital COVID-19 testing app, allegedly built off of OSGHD's software, The Salt Lake Tribune reported Aug. 28.
Utah and several other states tapped Nomi Health to handle its COVID-19 testing in 2020. Initially, Nomi had partnered with Qualatrics to help patients digitally schedule appointments and handle other software issues. However, Qualtrics could not handle the thousands of tests coming in per day and Nomi partnered with OSGHD.
OSGHD argues that Nomi then duplicated its software to avoid paying a per-test fee. The company has filed three lawsuits against Nomi Health.
In June, a jury trial found Nomi breached its contract with OSGHD and was ordered to pay $7 million. The company argues that it admits to breaching contracts but not copying the software and claims that OSGHD's app did not have the capacity to handle the tests.