Supreme Court's New FCA Standard Will Get Messy Fast

By Jeff Overley (June 16, 2016, 9:46 PM EDT) -- The U.S. Supreme Court's new standard for evaluating whether regulatory violations are serious enough to trigger False Claims Act liability will almost certainly divide the lower courts and lead to years of divergent rulings, attorneys say.

In a highly anticipated ruling on Thursday, the justices in Universal Health Services v. Escobar explained how lower courts should decide whether violations are "material" under the FCA. The unanimous opinion said that potential factors include whether violations involve explicit conditions of payment, whether the government usually reimburses contractors when aware of similar violations and whether a contractor knows that its violations would normally jeopardize reimbursement....

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!