United States Intervenes in Suit Against Private Equity Firm Based on Health Care Portfolio Company's Alleged False Claims Act Violations

Mar 22, 2018

Reading Time : 1 min

By: Elizabeth Marie Dulong Scott, Robert S. Salcido, David M. Zensky, Stephen M. Baldini, Prakash H. Mehta, James A. Deeken, Ann E. Tadajweski

The U.S. government took the unusual step of pursuing a False Claims Act (FCA) suit against a private equity firm based on an alleged commission scheme at one of its portfolio companies - a pharmaceutical company receiving federal reimbursements. The naming of the private equity fund in the complaint may signal an increased willingness by the government to pursue other investment management firms backing health care companies and other entities receiving federal funding.

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