Cyion Technologies Settlement Agreement with the United States
This document outlines a settlement agreement between Cyion Technologies LLC and the United States regarding allegations of improper federal grant funding. The agreement details payment terms, releases, and obligations for both parties.
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About this document
At a glance
- The settlement agreement involves Cyion Technologies LLC, a California-based biotech company, and the United States, represented by the Department of Justice and the Office of…
- Cyion agrees to pay $528,335.74 to the United States, plus 5% annual interest, in four installments between December 2026 and August 2027.
- The United States releases Cyion from civil or administrative monetary claims related to the alleged misconduct under laws including the False Claims Act, the Civil Monetary…
- Cyion agrees to classify certain costs related to the settlement as unallowable for government contracting purposes.
- If Cyion fails to make payments as scheduled, it will be in default and must cure the default within seven days of receiving a written notice.
For more details, keep reading below.
Parties and Allegations
The settlement agreement involves Cyion Technologies LLC, a California-based biotech company, and the United States, represented by the Department of Justice and the Office of Inspector General of the Department of Health and Human Services. The United States alleges that Cyion falsely certified its eligibility for federal grants under the Small Business Technology Transfer Program (STTR) and Small Business Innovation Research Program (SBIR). Specifically, the United States contends that Cyion’s Principal Investigator held outside full-time employment, violating the terms of the grants. The grants in question include STTR awards 1R41EB022439-01A1 and 1R41NS102026-01, received in 2017, and SBIR award 1R43HL170918-01, received in 2023.
Supported by PDF page 1Settlement Payment Terms
Cyion agrees to pay $528,335.74 to the United States, plus 5% annual interest, in four installments between December 2026 and August 2027. The payment schedule includes $176,094.30 due on December 31, 2026, followed by three payments of $117,413.81 on March 31, 2027, June 30, 2027, and August 15, 2027. The agreement allows Cyion to prepay the settlement amount without penalty. If Cyion undergoes a sale, merger, or transfer of assets, it must notify the United States, and all remaining payments will become immediately due.
Supported by PDF page 2Release of Claims and Reserved Rights
The United States releases Cyion from civil or administrative monetary claims related to the alleged misconduct under laws including the False Claims Act, the Civil Monetary Penalties Law, and common law theories such as breach of contract and fraud. However, the agreement reserves the United States’ rights to pursue criminal liability, tax-related claims under the Internal Revenue Code, administrative actions unrelated to the covered conduct, and liabilities of individuals. The United States also retains the right to enforce obligations created by the agreement.
Supported by PDF page 3Cyion’s Obligations and Waivers
Cyion agrees to classify certain costs related to the settlement as unallowable for government contracting purposes. These include costs incurred in connection with the investigation, defense, negotiation, and payment of the settlement. Cyion must repay any unallowable costs previously claimed from federal funds within 90 days of the agreement’s effective date. Additionally, Cyion waives defenses against future criminal or administrative actions based on constitutional claims like double jeopardy or excessive fines.
Supported by PDF page 4Default and Enforcement Provisions
If Cyion fails to make payments as scheduled, it will be in default and must cure the default within seven days of receiving a written notice. An uncured default allows the United States to accelerate payments, rescind the agreement, pursue claims, or offset amounts owed against other federal payments to Cyion. In the event of a collection action, Cyion agrees to pay a 10% surcharge or the United States’ reasonable attorneys’ fees and expenses. Cyion also waives defenses like statute of limitations or laches in any claims filed by the United States within 120 days of rescinding the agreement.
Supported by PDF pages 5, 6Agreement Details and Public Disclosure
The agreement is governed by U.S. law and enforceable in the United States District Court for the Northern District of California. It is binding on Cyion’s successors, transferees, heirs, and assigns. The agreement may be executed in counterparts, and facsimile signatures are considered binding. The United States reserves the right to disclose the agreement and related information to the public. Each party bears its own legal costs, and the agreement represents the complete understanding between the parties, amendable only by written consent.
Supported by PDF pages 7, 8Document record
- Document type
- Other DOJ document
- Category
- Other
- Publication date
- 2026-11-13
- DOJ office
- USAO - California, Northern
- Case number
- Not stated by source
- Collected
- 2026-11-15
- Original filename
- usao_ndca_pr_26-104_settlement_agreement.pdf
Source & integrity
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