Nursing Home Provider Dycora sued for Breaching Contract with Pharmaceutical Company

A complaint filed in the Southern District of Indiana on Thursday alleged that Dycora, LLC., a nursing home that provides medical care to its residents, breached its contract with plaintiff AlixaRx, LLC. The defendants are accused of ending their contract with AlixaRx prematurely, as well as failing to pay their outstanding balance and interest owed. 

AlixaRx is a pharmaceutical company that entered into a Pharmaceutical Provider Agreement with Dycora on June 1, 2016, with the initial term ending on November 30, 2019. The contract had an automatic renewal which extended the agreement until November 30, 2020. In June 2020, Dycora and AlixaRx amended their contract after Dycora tried to prematurely terminate their contract, with a provision that “either party may terminate the Agreement upon sixty days’ written notice but only if the terminating party is current within payment terms on all undisputed amounts owed at the time of notice and remains current through the date of termination.” In March 2021, Dycora stopped paying AlixaRx for their services, and as of Wednesday owes the plaintiffs nearly 500 thousand dollars.

The complaint also alleged that Dycora’s CEO, Julianne Williams, now identifies herself as the CEO of Elevate Health Care, believing that Williams “ is using the name Elevate Health Care in [an] attempt to collect revenue using the licenses of Dycora and the Dycora Facilities while avoiding to pay amounts owed by Dycora.” As a result, AlixaRx is suing Dycora on counts of breach of contract, unjust enrichment, equitable accounting, and also directly suing Julianne Williams for intentional interference with contractual relations. 

AlixaRx is seeking damages of at least $2,583,275.84, attorney’s fees and costs, and other relief.

The plaintiffs are represented by Faegre Drinker Biddle & Reath LLP