The 9th Circ.'s Expansive Reading Of Escobar In Gilead

By Sean Hartigan, Iris Bennett and Lidiya Kurin (July 26, 2017, 1:20 PM EDT) -- The U.S. Supreme Court's June 2016 decision in Universal Health Services Inc. v. United States ex rel. Escobar provided guidance on when an implied certification can be the basis of liability under the civil False Claims Act.[1] Specifically, Escobar held that an implied certification theory can succeed when (1) "the claim does not merely request payment, but also makes specific representations about the goods or services provided;" (2) "the defendant's failure to disclose noncompliance with … statutory, regulatory, or contractual requirements makes those representations misleading half-truths;" and (3) the misrepresentation is material to the government's payment decision.[2] Although Escobar set out these requirements, questions have remained as to how they would be interpreted at the trial court level, including what constitutes "specific representations about the goods or services provided," when an omission makes these representations "misleading half-truths," and how precisely to analyze materiality. A recent opinion, which reinstated a case dismissed for failure to state a claim prior to the Escobar decision's issuance, sheds light on the Ninth Circuit's expansive interpretation of each of these factors....

Law360 is on it, so you are, too.

A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.


A Law360 subscription includes features such as

  • Daily newsletters
  • Expert analysis
  • Mobile app
  • Advanced search
  • Judge information
  • Real-time alerts
  • 450K+ searchable archived articles

And more!

Experience Law360 today with a free 7-day trial.

Start Free Trial

Already a subscriber? Click here to login

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!