Ballou: Carlyle Escaped ManorCare Wrongful Death Suit Through Fund Shell Structure
Brendan Ballou · Sachin Khajuria and Brendan Ballou – Private Equity: Profit or Plunder? (EP.331) · Aug 7, 2023 · at 20:54
Brendan Ballou discusses how private equity legal structures insulate parent firms from operational liability in healthcare portfolio companies.
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“When the family of that resident sued for wrongful death, Carlisle was able to get the case against it dismissed, saying that it was not the technical owner of the nursing home chain, but rather merely advised a series of funds whose limited partners through several shell companies owned the chain. And that was enough to get the case against it dismissed, and ultimately there was no money transferred from Carlisle to the family whose mother died.”
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