Law360, New York (September 29, 2016, 10:37 AM EDT) -- The United States District Court for the Eastern District of New York recently dismissed a False Claims Act complaint for failing to plead materiality under the standard announced in Universal Health Services Inc. v. U.S. ex rel. Escobar, the U.S. Supreme Court's landmark FCA opinion issued in June of this year. The case, U.S. ex rel. Lee v. Northern Adult Daily Health Care Center, 13-cv-4933, 2016 (E.D.N.Y. Sept. 7, 2016), becomes one of the first to substantively apply Escobar and highlights the barrier the FCA's materiality requirement poses to FCA relators in the wake of the Supreme Court's ruling. It also suggests ways in which courts already are divided in their interpretation of Escobar....
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