By Christopher Hewitt and Jayne Juvan ( May 7, 2018, 1:44 PM EDT) -- The United States government recently sent shock waves through the private equity industry by charging a private equity firm for its portfolio company's alleged health care fraud. The case, United States ex rel. Medrano v. Diabetic Care RX LLC d/b/a Patient Care America, involves alleged illegal conduct involved with pharmacy compounding, or the practice of creating customized medicines for individual patients, by the portfolio company. In a startling twist, the government also sued the private equity sponsor that owned a controlling interest in the portfolio company....
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