Acquisitions » Successor Liability For FCA Violations

Successor Liability For FCA Violations

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June 16, 2016

Any company considering an acquisition should first consider whether the target company has any pre-acquisition False Claims Act compliance risk that an acquiring company would assume. As a recent guide from the DOJ and SEC has put it, successor liability “applies to all kinds of civil and criminal liabilities, and FCA violations are no exception.” Moreover, the FCA is now impacting more companies – and in more industries – than it has in the past. An article by Vinson & Elkins attorneys Tirzah Lollar and Christina Ferma examines this issue, and it suggests some good questions to ask when assessing a potential target company for possible FCA liability.

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