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....

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