Unaddressed Split On FCA Objectivity May Spur Settlements

By Daniel Wilson (February 23, 2021, 10:18 PM EST) -- The U.S. Supreme Court's refusal to tackle whether False Claims Act liability requires a claim to be objectively false leaves a significant circuit split and may drive an uptick in FCA settlements as defendants consider the costs of extended litigation.

The justices on Monday rejected petitions from hospice operator Care Alternatives and health care management company RollinsNelson LTC Corp. asking whether the FCA requires a showing of "objective falsity," as the Eleventh Circuit had previously ruled, or if an expert opinion that differs from the judgment of a defendant can form the basis of an allegation that a claim for government...

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