9th Circ. Grapples With Escobar Test For FCA Liability

Law360, New York (December 6, 2017, 9:59 PM EST) -- The Ninth Circuit on Wednesday struggled with whether the U.S. Supreme Court’s milestone Escobar decision created an ironclad test for False Claims Act liability, with judges repeatedly expressing uncertainty about the high-stakes question.

At eagerly awaited oral arguments, a three-judge panel examined a whistleblower suit accusing the California-based Academy of Art University of committing fraud by paying banned bonuses to student recruiters. The suit relies on an “implied certification” theory of FCA liability, with the AAU accused of implicitly certifying ongoing compliance with the bonus ban...
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