Private Equity Firms with Health Care Investments Should Protect Themselves from Potential False Claims Act Liability Following Medrano Settlement

Guest post by Susan M. Hendrickson of Dechert LLP

The Department of Justice (“DOJ”) on September 18, 2019, announced a $21.36 million settlement with compounding pharmacy Patient Care America (“PCA”), two PCA executives, and private equity firm Riordan, Lewis & Haden, Inc. (“RLH”), controlling owner of PCA. The settlement resolves the government’s False Claims Act (“FCA”) and Anti-Kickback Statute (“AKS”) allegations against the parties, and, significantly, marks the first time the government has named a private equity firm as a defendant in an FCA matter.

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