Ten Minute Interview: Qualified Small Business Stock under Section 1202

Foley partner Kyle Faget, co-chair of the firm’s Medical Devices Area of Focus, is speaking in American Conference Institute’s Inaugural Summit on GLP-1 Law & Policy on July 24.

With the size and scope of President Trump’s tariffs continuing to shift, this is a critical time for businesses to assess their contracts and determine how increased tariff costs might adversely affect profitability, and whether there are any strategies to mitigate the losses.

The case, United States v. Sorenson, addressed whether a Medicare-registered distributor violated the AKS in making payments to advertising, marketing, and manufacturing companies that worked to sell orthopedic braces to Medicare patients. The court held that such payments were not “referrals” within the meaning of the AKS because the payments were made to entities that were neither physicians in a position to refer their patients nor other decisionmakers in positions to “leverage fluid, informal power and influence” over health care decisions.