Implied False Certification Theory Gains Support

Law360, New York (September 30, 2010, 12:37 PM EDT) -- Last month the U.S. Court of Appeals for the Ninth Circuit extended the breadth of the False Claims Act for actions brought within that circuit by accepting the implied false certification theory of liability.

This is a significant development that increases the risk involved in doing business with the government and enhances the government's leverage in negotiations with contractors.

First, some background: The False Claims Act is the government's weapon of choice to combat alleged waste, fraud and abuse in government contracting.

The FCA forbids contractors...
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