Doximity and OpenEvidence Settle AI Dispute Without Disclosing Terms

Doximity and OpenEvidence have ended a contentious legal dispute over clinical artificial intelligence, with a federal judge dismissing the case with prejudice. That means the claims cannot be filed again in the same court. Each company agreed to pay its own legal costs, while other settlement terms were not disclosed.

OpenEvidence originally accused Doximity employees of posing as physicians and using provider identification numbers to gain access to its platform. The complaint alleged that users submitted prompts designed to reveal system instructions and proprietary information. Doximity denied wrongdoing and countersued for defamation and harassment, arguing that OpenEvidence had made misleading public comparisons and pressured employees.

The allegations changed during the litigation. OpenEvidence later dropped its trade-secret claims and focused on alleged violations of federal anti-hacking law and misuse of the platform. The settlement arrived as OpenEvidence faced a deadline related to internal Slack messages that Doximity said had been deleted. Neither company provided a detailed public explanation of the agreement.

The dismissal removes a legal distraction, but it does not establish that either side’s allegations were proven.

Both companies remain direct competitors. Doximity offers an AI-backed clinical assistant alongside its professional network for physicians, while OpenEvidence provides an AI medical search and reasoning platform for verified doctors. Doximity says its clinical AI products are used by more than 165 health systems. It also signed a partnership with Wolters Kluwer to bring UpToDate information into Doximity Ask.

For Doximity shareholders, the settlement reduces uncertainty around legal expense and management attention, but the financial effect cannot be measured because payment and conduct terms were not disclosed. The more important long-term question is whether Doximity can convert physician usage into durable revenue while maintaining accuracy, security and trust.

Doximity reported fiscal 2026 revenue of $644.9 million, up 13%, and free cash flow of $317.5 million, up 19%. Those figures provide a profitable base for investment in clinical AI. The settlement clears one obstacle, but competitive performance will be determined by adoption, product quality and customer retention rather than the court outcome alone.