The U.S. Justice Department has only recently begun including private equity owners as defendants in its False Claims Act lawsuits against healthcare companies. There have been a handful of examples since 2016, and an official said to expect more cases in the future.
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U.S. et al. v. Fortress Investment Group et al. / 13-cv-00314 MO Click to view this case's details. You can also hover or touch the ? tooltip for a shorter summary. |
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U.S. ex rel. Medrano and Lopez v. Diabetic Care Rx d/b/a Patient Care America, et al. / 15-cv-62617 Click to view this case's details. You can also hover or touch the ? tooltip for a shorter summary. |
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U.S. and the Commonwealth of Massachusetts ex rel. Martino-Fleming v. South Bay Mental Health Center; Community Intervention Services; H.I.G. Growth Partners; H.I.G. Capital; Peter J. Scanlon; and Kevin P. Sheehan / 15-CV-13065-PBS Click to view this case's details. You can also hover or touch the ? tooltip for a shorter summary. |
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U.S. ex rel. Johnson et al. v. Therakos et al. / 12-cv-1454 Click to view this case's details. You can also hover or touch the ? tooltip for a shorter summary. |
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Six qui tam lawsuits, including U.S. ex rel. Mandalapu et al. v. Alliance Family of Companies et al. / 4:17-cv-00740 Click to view this case's details. You can also hover or touch the ? tooltip for a shorter summary. |
| Date | Event | ||
|---|---|---|---|
| 9/9/2015 | Yates memo released (PDF) outlining Justice Department’s commitment to holding individuals accountable for wrongdoing. | ||
| ? 4/29/2016 | DOJ intervenes in Fortress et al. One of the first examples of DOJ including private equity firm as defendant in False Claims Act lawsuit against healthcare company. | ||
| ? 5/5/2016 | DOJ reaches $8.9 million settlement with Fortress Investment Group and Holiday Acquisition Corp. | ||
| ? 12/15/2017 | DOJ intervenes in part and declines to intervene in part in Medrano and Lopez v. Diabetic Care Rx case. | ||
| ? 1/9/2018 | Massachusetts attorney general intervenes in Martino-Fleming v. South Bay Mental Health Center et al. | ||
| ? 9/18/2019 | DOJ reaches $21.4 million settlement with private equity firm Riordan, Lewis & Haden and other defendants in Medrano v. Diabetic Care Rx case. | ||
| ? 11/19/2020 | DOJ intervenes in Johnson et al. v. Therakos case, reaches $11.5 million settlement with private equity firm The Gores Group and Johnson & Johnson subsidiary Medical Device Business Services. Of the $11.5 million, Gores agreed to pay $1.5 million. | ||
| ? 7/21/2021 | DOJ reaches $15.3 million settlement to resolve kickback and false billing allegations with Alliance Family of Companies. Of that, private investment firm Ancor Holdings will pay about $1.8 million. | ||
| ? 10/14/2021 | Massachusetts attorney general reaches $25 million settlement with private equity firm H.I.G. Capital, H.I.G. Growth Partners and two executives for their roles in Martino-Fleming case. | ||