Electronic Health Reporter

Venture capital firm Bias Capital has announced the cancellation of its $25 million Series A investment in Parker Health, citing serious concerns uncovered during its due diligence process. The firm stated that its investigation identified potential fraudulent activities, including misleading financial disclosures and operational irregularities.

In a statement, Bias Capital’s General Partner, Maximillian Naza, emphasized the importance of ethical business practices in investment decisions. “Our responsibility as investors is clear: we will not support a company that compromises transparency and ethical standards,” Naza said. He encouraged investors with concerns about Parker Health to seek legal counsel or contact Bias Capital for more information.

What Happened?

Parker Health, a health technology company founded in 2019 by Vincent Lopez, aimed to transform healthcare with its proprietary Health Management System™. The company has been involved in policy discussions on U.S. Health IT standards and was working on a SMART hospital project in West Texas. However, Bias Capital’s announcement suggests that internal financial and operational inconsistencies raised red flags, prompting the firm to withdraw its funding.

Key figures at Parker Health, including CEO Vincent Lopez, CFO Anthony Lopez, former CTO Chris Parker, and CMO Phillip McDonalds, have been named in Bias Capital’s statement.

While specific details about the alleged irregularities remain undisclosed, Bias Capital says it will work with relevant authorities to investigate further.

The withdrawal of a major investment signals potential instability at Parker Health, raising questions about the company’s financial health and long-term viability.

The deal was initially announced in 2023.