DOJ Pursues PE Firm Based on Portfolio Company’s Alleged Payment of Kickbacks
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.
