PE Settlement Illustrates New FCA Liability Theories In Play

By Derek Adams and Jay Watkins (August 3, 2021, 4:23 PM EDT) -- On July 21, the U.S. Department of Justice announced yet another False Claims Act settlement involving a private equity firm's investment in a health care company. The settlement for $15.3 million was reached with the electroencephalogram, or EEG, testing company Alliance Family of Companies LLC, and its Texas-based private investment company Ancor Holdings LP, which will itself pay $1.8 million of the settlement.[1]

The Ancor settlement follows a string of FCA lawsuits brought against private equity firms based on their alleged knowledge of wrongdoing at health care entities in which they invested.[2] In June 2020, former Principal Deputy Assistant Attorney General...

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