What You Should Know:
– Fruit Street Health, a New York-based healthcare startup, has filed a lawsuit against Sharecare, a healthcare technology company, seeking $25M in damages for alleged breach of contract and fiduciary duties.
– The lawsuit, filed in the Superior Court of Fulton County, Georgia, claims that Sharecare violated the terms of a shared business agreement by launching its own diabetes prevention program, “Eat Right Now,” in January 2023. Sharecare has not yet responded to the lawsuit.
Fruit Street Health Allegations Against Sharecare
Fruit Street Health alleges that Sharecare:
– Promised to exclusively offer its diabetes prevention program (DPP) to Sharecare members.
– Instead, launched its own competing DPP, cannibalizing Fruit Street’s business.
– Engaged in internal misconduct and breached fiduciary duties owed to Fruit Street.
Fruit Street Health claims that Sharecare’s actions have caused significant financial harm, including:
– Loss of revenue and market share.
– Damage to its reputation and brand.
– Difficulty attracting and retaining customers.
“Tonya Darner, CEO of Fruit Street Health, has stated that the company is “extremely disappointed” by Sharecare’s actions. She emphasized that Fruit Street Health has invested significant resources in developing its DPP program and that Sharecare’s alleged breach of contract and misappropriation of intellectual property has caused “substantial harm” to her company.
“This lawsuit is likely to have significant implications for the healthcare industry, particularly in the realm of digital health. It raises important questions about the ethical use of intellectual property in the digital age and the responsibilities of companies operating in the healthcare space. The outcome of this case could set a precedent for future legal disputes involving similar issues.”