February 20, 2018

RLH Equity Partners notes the recent filing by the US government of a civil lawsuit against (i) our portfolio company, Patient Care America (PCA), (ii) a current and a former officer of PCA, and (iii) RLH.  In the complaint, the government alleges violations of the federal False Claims Act and Anti-Kickback Statue by the defendants during an eight-month period spanning 2014 and 2015 in connection with PCA’s discontinued line of business involving the fulfillment of doctors’ prescriptions for compounded topical pain medicine.  RLH and PCA have fully cooperated with the government’s investigation into this matter, but disputes the basis of the lawsuit.  RLH and PCA intend to vigorously contest the allegations and, as an initial step in that process, will file motions seeking to dismiss the lawsuit.