Escobar's Materiality Standard: Circuit Developments

By Gerald Meyer ​ (August 28, 2017, 11:34 AM EDT) -- In Escobar, the U.S. Supreme Court unanimously held that plaintiffs under the False Claims Act could pursue their claims under the theory of implied false certification.[1] The court explained that an FCA claim can proceed when a government contractor makes specific representations about goods or services provided, but fails to disclose its noncompliance with a requirement that makes its specific representations misleading. The court rejected the argument that the violated requirement must be an expressly designated precondition of payment. The court established, however, that the misrepresentation must have been material to the government's payment decision.

The court declined to establish a...

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