FCA Materiality Standard's Odd Application To Payment Terms

Law360 (October 5, 2020, 6:33 PM EDT) -- Recently, in U.S. v. Sanofi U.S. Services Inc.,[1] the U.S. District Court for the Eastern District of Pennsylvania interpreted the U.S. Supreme Court's ruling on materiality in Universal Health Services Inc. v. Escobar.[2]

In the process, the ruling highlighted a puzzling aspect of the Escobar ruling in which the high court discussed the relationship between an express condition of payment and materiality, and concluded that the former is not conclusive as to the latter.

In Escobar, the Supreme Court affirmed the validity of an implied false certification theory under the False Claims Act by holding that there may be liability under...

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