Chicago-based EHR company Allscripts filed a complaint May 17 against Andor Health, an Orlando, Fla.-based health IT startup, alleging it breached numerous contracts and stole trade secrets, according to court documents.
Allscripts claims Andor Health and its chairman and CEO Raj Toleti, who was a former executive at Allscripts, violated confidentiality, non-compete and non-disclosure provisions of various contracts.
In 2018, Allscripts purchased patient engagement company HealthGrid, which was founded and led by Mr. Toleti. As part of the acquisition, Allscripts hired Mr. Toleti as senior vice president and general manager; Allscripts also brought on HealthGrid employee Amar Bulsara as the company's new director of professional services.
Allscripts claims that Mr. Toleti and Mr. Bulsara signed inventions restrictive covenant agreements when they joined the company, according to the court documents. When Mr. Toleti resigned from Allscripts in 2020, he entered into a settlement agreement with Allscripts, Andor Health and Mahathi Software, another company he had founded.
After forming the covenant agreements, Allscripts "discovered that [Mr.] Toleti, Andor and [Mr. Bulsara] were willfully and wantonly disregarding their non-solicit, non-compete, and confidentiality obligations," the lawsuit states.
Mr. Toleti was allegedly barred from participating in "competitive business" for four years following the HealthGrid merger agreement's closing in 2018, and Allscripts also claims Andor's user interface for its product is "nearly identical" to Allscripts' FollowMyHealth platform.
Allscripts has told Andor and Mr. Toleti to stop violating the contracts and has sent a cease-and-desist letter, but Andor and Mr. Toleti have denied engaging in misconduct, the complaint states.
Allscripts declined Becker's Hospital Review's request for comment citing its policy against commenting on pending litigation.
Andor Health did not respond to Becker's request for comment.