A jury awarded a spine practice $6.4 million in damages after determining that payroll service firm Ataraxis defrauded the group, Idaho Statesman reported April 13.
Meridian-based Spine Institute of Idaho hired Ataraxis in 2012 for payroll tax reporting and filings. When a COVID-19-era tax credit was created, Ataraxis told the practice it would file the paperwork needed to claim the refund.
However, Spine Institute of Idaho alleged the payroll firm strung it along, saying the claim was filed even when it wasn’t, the report said. For two years the practice believed the claim was pending before the IRS.
In a jury verdict, the practice was awarded more than $454,000 in economic damages and an additional $6 million in punitive damages against Ataraxis and its CEO.
Ataraxis filed a motion for a new trial and appealed the verdict, the report said.
“Ataraxis respectfully disagrees with the outcome,” the company said in a statement to the Idaho Statesman. “Because this matter is ongoing, we are limited in what we can share. However, we remain confident that a review of the record on appeal will provide appropriate context, and we look forward to the appellate process. We take our partnerships and responsibilities seriously and remain committed to operating with integrity and transparency.”
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