On October 14, 2021, the Massachusetts Attorney General (MA AG) announced a $25 million settlement with South Bay Mental Health Center, Inc.’s (SBMHC) private equity owner and two former executives for allegedly causing false claims to be submitted to the Massachusetts Medicaid Program. According to the MA AG’s press release, the case was handled with “substantial assistance” from the U.S. Attorney’s Office for the District of Massachusetts and the Office of the Inspector General (OIG).[1] The SBMHC settlement demonstrates a continuing trend on the part of the Department of Justice (DOJ) and OIG to include private equity firms as part of their investigations of whistleblower False Claims Act (FCA) allegations, as well as state attorneys general to enforce state laws regarding false claims against private equity firms and their executives.
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