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Why Escobar Materiality Rule Applies To California FCA

Law360 (September 5, 2018, 2:19 PM EDT) -- The federal False Claims Act — and its similar state law counterpart, the California False Claims Act — both provide for the possible recovery of treble damages, civil penalties and costs from any party who knowingly presents a false claim for payment to the government. The FCA and CFCA are potentially powerful anti-fraud enforcement statutes that could expose government contractors to expansive liability. But in order to succeed on an FCA or CFCA claim, the relator (sometimes called a “qui tam plaintiff”) or the government must prove several demanding elements: (1) that the defendant presented a false claim for payment; (2)...

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