1st Circ. Takes Broad View Of 'False' Under FCA

Law360, New York (April 16, 2015, 10:07 AM EDT) -- With its recent decision in United States ex rel. Escobar v. Universal Health Services, the First Circuit again warned businesses in highly regulated industries that a broad range of regulatory violations could potentially serve as the basis of False Claims Act liability.

As those who contract with the federal government already know, the False Claims Act provides that anyone can be subject to penalties and treble damages for making "false or fraudulent" statements to the government in submitting claims for goods or services. The First Circuit's new opinion, issued March 17, 2015, reaffirmed its "broad view of what may constitute a...

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