At least one person died in Manor Care due to neglect and inadequate care.
In court, the private equity firm, Carlisle, denied ownership of Manor Care and shifted blame to limited partners and shell corporations.
Although Carlisle had operational control and burdened Manor Care with debt, legal doctrines like piercing the corporate veil allowed them to escape liability.
Private equity firms have significant operational control over the companies they acquire, but face little responsibility for poor outcomes.
The complexity of private equity ownership structures can make it difficult to hold them accountable.
They say they make companies more efficient through savvy management. Critics say they bend the rules to enrich themselves at the expense of consumers and employees. Can they both be right? (Probably not.)