Settlement with the DOJ
In a significant development for Semler Scientific, a U.S.-based medical technology firm, a tentative settlement has been reached with the Department of Justice (DOJ) concerning allegations of infractions related to the federal False Claims Act. The company is set to pay a substantial sum of $29.75 million to resolve these issues, which stem from the promotion of its leading product, QuantaFlo.
Semler disclosed in a recent filing with the Securities and Exchange Commission (SEC) that it had been under investigation since it received a civil investigative demand from the DOJ in 2017. Following this, the company has been cooperative throughout multiple years of inquiries and began preliminary negotiations for a settlement this February.
Financial Strategy Using Bitcoin
Interestingly, Semler Scientific plans to leverage its Bitcoin holdings as a financial strategy for covering the settlement expenses. On Tuesday, the company announced it has entered a loan agreement with Coinbase, a prominent cryptocurrency exchange, which allows it to utilize its Bitcoin reserves as collateral for borrowing cash and digital assets.
According to the filing, contingent on the settlement being finalized, Semler intends to utilize the funds obtained through this mechanism, along with its existing cash resources, to settle with the DOJ. Presently, Semler possesses 3,192 Bitcoins, valued at approximately $267 million.
If this plan is executed, it may mark a historic instance of a publicly traded company using Bitcoin-backed loans to fulfill a government settlement obligation.
