On Feb. 16, the U.S. Department of Justice (DOJ) filed a complaint intervening in a qui tam action that two former employees brought against their former employer, Patient Care America (PCA), a compounding pharmacy located in Pompano Beach, Florida, complaint filed by the U.S. Department of Justice, United States Medrano v. Diabetic Care Rx, No. 15-cv-62617 (S.D.FL.). In its complaint, the DOJ alleges unjust enrichment, payment by mistake, and violations of the False Claims Act, 31 U.S.C. Sections 3729-33.

In addition to PCA, which the relators named as a defendant, the DOJ named Patrick Smith and Matthew Smith who acted as PCA’s CEO and pharmacist, respectively. The DOJ also named Los Angeles-based private equity firm, Riordan, Lewis & Haden (RLH). RLH is the manager of a private equity fund called RLH Investors III, which has owned a controlling stake in PCA since July 15, 2012. In addition, two RLH partners, Michel Glouchevitch and Kenneth Hubbs, served as officers and directors of both PCA and a holding company with an ownership interest in PCA.

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