On July 26, the U.S. Securities and Exchange Commission adopted new rules regarding public companies’ reporting of (i) cybersecurity incidents, (ii) policies and procedures for identifying and managing cybersecurity risks and (iii) management and board roles in implementing cybersecurity policies and procedures. Read on for details about the new rules and recommended next steps for
Healthcare & Life Sciences Private Equity Deal Tracker: TPG Acquires Nextech From Thomas H. Lee for $1.4 Billion
TPG has announced it has acquired Nextech from Thomas H. Lee Partners (THL) for $1.4 billion.
Nextech, based in Tampa, Fla., is a provider of clinical and administrative healthcare technology solutions for specialty physician practices. Founded in 1997, the company states it services more than 11,000 physicians in dermatology, ophthalmology, orthopedics, plastic surgery and med spa.
TPG is investing…
Eleventh Circuit Affirms Order for $1.195 Million in Restitution and 48 Month Sentence in Commercial Insurance Healthcare Fraud Case
Last month, the Eleventh Circuit upheld a $1.195 million restitution order and 48-month sentence against Carlos Verdeza for three counts of healthcare fraud. See United States v. Verdeza, No. 21-10461, 2023 WL 3728960 (11th Cir. 2023). Verdeza was a case brought by the United States against a physician assistant who produced fraudulent patient files and sought reimbursement from Blue Cross Blue Shield (BCBS) commercial healthcare insurance for physical therapy treatments that were never performed. A jury in the United States District Court for the Southern District of Florida convicted Verdeza on three healthcare fraud counts. Verdeza illustrates that prosecutors can and do prosecute healthcare fraud cases that do not involve government payors.
U.S. Supreme Court Clarifies DOJ’s Authority to Dismiss Whistleblowers’ False Claims Act Suits, Questions Constitutionality of Qui Tam Provisions
In United States ex rel. Polansky v. Executive Health Resources, Inc., the U.S. Supreme Court recently resolved a circuit split[1] by holding that in a False Claims Act (“FCA”) action (1) the Government may seek dismissal of a qui tam case in which it initially declined to intervene over the relator’s objection as long as the Government later intervened in the litigation, and (2) that in considering such a dismissal motion, district courts should apply the rule generally governing voluntary dismissal of suits: Federal Rule of Civil Procedure 41(a). Under Rule 41(a), the Court explained that the Government has broad latitude to seek dismissal stating that “motions will satisfy Rule 41 in all but the most exceptional cases.” The decision is an important one for the Government and FCA defendants. But perhaps as important as the Court’s central holding in the Polansky case (and certainly more surprising), was the view expressed by Justice Thomas in dissent (and echoed by Justice Kavanaugh in a concurring opinion joined by Justice Barrett) that the FCA’s qui tam provision permitting a private citizen to litigate a case on behalf of the United States may be unconstitutional.
Ponzi Perspectives: 2023 Midyear Roundup
Since 2021, McGuireWoods’ Ponzi Litigation team has been tracking and posting case alerts on Ponzi-related complaints filed in federal and state courts throughout the country and analyzed key decisions that have the potential to influence controlling law on Ponzi-related issues. The blog also posts practical considerations like effective defenses to dismiss Ponzi litigation and common…
Healthcare & Life Sciences Private Equity Deal Tracker: TT Capital Partners Acquires Pyx Health
TT Capital Partners (TTCP) has made a majority growth investment in Pyx Health, according to a news release.
Pyx Health, based in Tucson, Ariz., is the developer of a solution designed to address loneliness and social isolation. Founded in 2017, the company works with major payers as well as government, employer and community…
Women in PE to Know: Ewelina Woloszyn
McGuireWoods has long been an avid supporter of the advancement of professional women. As part of our initiative seeking to expand the leadership of women in private equity, we are continuing our series of profiling women leaders in private equity. We are hopeful that this series will serve to inspire other women to pursue their…
FTC Continues Tough “Made in USA” Enforcement Even Where Labeling Rule Is Not Violated
On June 26, the Federal Trade Commission announced a proposed consent order resolving allegations against a group of leather and other clothing accessory companies regarding Made in USA claims in online and print materials and qualified Made in USA claims on product labels. Read on for details about this enforcement action and key takeaways for…
DHS Issues Final Rule Regulating Federal Contractors’ Handling of Controlled Unclassified Information
On June 21, the U.S. Department of Homeland Security issued a long-anticipated cybersecurity final rule that revises an existing clause and adds two new clauses to the Homeland Security Acquisition Regulation related to contractors’ handling of controlled unclassified information.
Read on for highlights from this rule, which goes into effect July 21 and is likely to…
Healthcare & Life Sciences Private Equity Deal Tracker: Thoma Bravo Invests in Bluesight
Thoma Bravo has announced it has completed a growth investment in Bluesight.
Bluesight, based in Alexandria, Va., is a developer of software supporting the pharmacy supply chain. Founded in 2011, the company’s solutions include those for inventory management, controlled substance diversion prevention and medication purchasing.
Thoma Bravo, with offices in Chicago and San…