AcerMed goes belly-up, president points to lawsuit

Twitter icon
Facebook icon
LinkedIn icon
e-mail icon
Google icon

AcerMed, an ambulatory EMR provider in Irvine, Calif., has gone out of business, and its president, Richard Younis blames a lawsuit with MedInformatix and the poor health of Kamran Ghane, its chief technical officer (CTO), for the company’s demise.

AcerMed had been entangled in a legal dispute with MedInformatix, a Los Angeles-based health IT provider, who alleged that AcerMed stole its software code. AcerMed was fined, but not found in copyright violation. The ruling is currently under appeal.

In an interview with EMR Update, Yonis said the lawsuit drained the company of its resources and prevented it from securing additional funding. Yonis also admitted the illness of AcerMed’s CTO hurt its ability to obtain new funding.

In AcerMed’s final release on Sept. 5, it addressed its customers: “Meanwhile, if you need product support you may contact some of our former employees who are willing to work with you independent of AcerMed support purposes, on a best effort basis,” stated the unsigned letter.

AcerMed may be the first company with a CCHIT-certified product to collapse.