taylor1234 Posted May 13, 2019 Report Share Posted May 13, 2019 First post here and new to this world. Scenario: Company A is looking to purchase a share (e.g. 20%) in Company B. Is Company B governed by Company A's schedules and the Most Favored Customer policy? What about vice versa. If Company B already has a schedule, is Company A now governed by those prices? Neither company would be a subcontractor or vendor for the other. Two independent companies selling goods that may overlap. Would this come create any False Claim Act issues? I've researched and find cases where they go after the owner of a subsidiary but it is because of actions the wholly owned sub did, not because MFC extended to that company. Any help/direction is appreciated. Link to comment Share on other sites More sharing options...
here_2_help Posted May 15, 2019 Report Share Posted May 15, 2019 Most of this is a legal question. But to the extent I understand, you seem to be asking whether a 20 percent ownership creates an affiliation for compliance purposes. The answer is: it depends. My limited understanding is that a determination of affiliation (and/or control) is circumstance dependent, and that other factors (other than ownership percentage) may affect the determination. This is a question better asked of a knowledgeable attorney. Link to comment Share on other sites More sharing options...
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