10th Circ. Correctly Affirmed Tough FCA Materiality Standard

Law360 (March 17, 2020, 4:25 PM EDT) -- The U.S. Court of Appeals for the Tenth Circuit recently affirmed summary judgment for the defendant in U.S. v. Lawrence Memorial Hospital.[1]

In holding that the relator had not shown that she could prove the defendant's material noncompliance with the legal requirements at issue, the court affirmed important limits on the use of the False Claims Act established by the U.S. Supreme Court in its 2016 Universal Health Services Inc. v. Escobar decision.[2]

What's at stake? Relators and their attorneys generally favor an expansive view of the reach of the FCA. After all, if regulated or contractual conduct falls outside the...

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