3rd Circ. Nixes 'Objective Falsehood' Test For FCA Claims

Law360 (March 4, 2020, 10:00 PM EST) -- The Third Circuit ruled Wednesday that a district court erred when it granted summary judgment in favor of a hospice provider accused of bilking Medicare, nixing the lower court's requirement for the plaintiffs to show an "objective falsehood" to proceed with their False Claims Act case.

The three-judge panel said the New Jersey federal court that oversaw the case against Care Alternatives had wrongly decided that expert testimony raising questions about the validity of several hospice certifications merely amounted to a difference of opinion among physicians.

"Regarding the element of falsity, the district court adopted a standard not previously embraced or...

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