Private Equity Firms—New(ish) FCA Targets?
Last November, DOJ announced its second FCA settlement in two years with a private equity firm. It was a $11.5 million settlement with Medical Device Business Services, Inc. and private equity firm, The Gores Group (TGG). According to the DOJ, Therakos, Inc. improperly marketed and promoted, between 2006 and 2015, one of its medical devices for treating pediatric patients—even though the FDA had never approved its use for the pediatric population. Therakos agreed to pay $10 million to resolve the off-label marketing allegations, but TGG also settled and agreed to pay $1.5 million. The private equity firm had owned Therakos during a portion of the relevant timeframe, acquiring it in 2013 and later selling it in 2015 for $1.325 billion.
Source:
- Arnold & Porter: Private Equity Firms—New(ish) FCA Targets?
