The Department of Justice has named a private equity firm as a co-defendant in a False Claims Act complaint, along with one of its portfolio companies. DOJ alleges that the portfolio company paid illegal kickbacks related to compound drug prescriptions reimbursed by TRICARE in an effort to increase its ROI. The inclusion of a PE firm as a defendant could signal DOJ’s intention to hold private equity sponsors accountable for the noncompliance of their portfolio companies.
Regulations, Compliance, & Enforcement
Trending Now
One Part Legal, One Part Behavioral: A Winning Recipe for a More Thoughtful Compliance Program • DOJ Has Agreed Not to Oppose Entry of Judgment On Three Specific Biden-Era Davis-Bacon Act Rules Involving Materialmen, Truckers, and the Application of the Christian Doctrine. • A Decade Later, Escobar Is Still Shaping FCA Cases • Senate Panel Advances NDAA Measure Restricting Defense Contractor Stock Buybacks • AI Is Taking Background Checks from ‘Months to Hours,’ Clearance Agency Says
DOJ Pursues PE Firm Based on Portfolio Company’s Alleged Payment of Kickbacks
Track False Claims Act cases, audit trends, and compliance best practices with our Compliance & Enforcement newsletter, delivering up-to-the-minute intelligence Monday–Saturday — Subscribe here.