; or (cc) under public investigation or facing a pending lawsuit from a State or Federal agency; (ii) if the Department has concerns with the entity’s compliance based on program reviews or audits; or (iii) if the eligible entity fails to meet the financial responsibility standards prescribed by the Secretary in accordance with section 498(c) or is placed on a reimbursement payment method by the Secretary. (e) Waivers and other flexibility (1) In general With respect to any eligible entity selected to carry out a demonstration project under this section, the Secretary may— (A) waive any requirements of the provisions of law (including any regulations promulgated under such provisions) listed in paragraph (2) for which the eligible entity has provided a reason for waiving under subsection (b)(4)(J)