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TECH: Problems for Employer-backed PHR

The Dossia Project, the sweeping personal health record (PHR) initiative backed by Wal Mart, Cardinal Health, Pitney Bowes, Intel, BP and other major employers, looks as though it is running into serious problems. The consortium is suing JD Kleinke’s Omnimedix Institute, the non-profit group which was hired to develop the system seven months ago. "They went ahead to file
a restraining order to prevent us from suing them," Ominmedix chairman
and CEO J.D. Kleinke said in an interview. "They’ve gone ahead and
filed a restraining order against us, a 13-employee, 501-C
."

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EdSmith

This raises many questions. Can anyone answer them?
First, how can Omnimedix, described elsewhere as an “IT vendor” possibly qualify as a 501(c) non-profit? It sounds like the consortium of Walmart, Cardinal Health, … hired them specifically for commercial product development and they don’t do anything else.
Second, how does an IT project or business relationship go so sour so fast?. Everyone is suing each other practically before the phones are hooked up.