In the realm of False Claims Act (FCA) enforcement, state attorneys general (AGs) are increasingly collaborating with federal authorities and fellow state AGs to address allegedly fraudulent activities. Companies operating across multiple states are under heightened scrutiny, particularly in the healthcare sector, where compliance with regulations is critical. The United States Department of Justice (DOJ) highlighted this collaboration with state AGs in its announcement of FCA recoveries last year, noting that DOJ is working closely with state AGs to recover funds for both federal and state Medicaid programs. There also has been increased coordination targeting third-party investors, such as private equity and venture capital firms, to ensure that they conduct thorough due diligence and maintain robust compliance programs when investing in healthcare companies. This increased coordination aims to hold all parties accountable, from healthcare providers to their financial backers, in preventing and addressing alleged fraud.

In the latest episode of MoForecast, Morrison Foerster partners Carrie H. Cohen, global co-chair of the Investigations + White Collar Defense Group and State + Local Government Enforcement team, and Adam Braverman, a partner in the Investigations + White Collar Defense Group, examine the current dynamics of state AG enforcement under the FCA. They explore the implications of multijurisdictional investigations and the growing involvement of third-party...

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