The settlement in Medrano v. Diabetic Care Rx, LLC d/b/a Patient Care America ("PCA") resolved the government’s False Claims Act (“FCA”) and Anti-Kickback Statute (“AKS”) allegations which included the first time the DOJ named a private equity firm as a defendant such a matter.

The case involved whistleblower allegations that executives of the private equity firm and PCA paid illegal kickbacks to third-party marketers to secure and induce compounded drug prescriptions. 

A good summary of the case and issues can be found here:

The Dechert takeaways highlight care that private equity firms must take when they sit on the boards of portfolio companies.