FCA Lessons From A Year Of Escobar

By Thomas Gallagher, Sara Richman, Kate Stanley and Allison DeLaurentis (June 20, 2017, 12:08 PM EDT) -- It has been one year since the U.S. Supreme Court's landmark ruling in Universal Health Services v. United States ex rel. Escobar,[1] which resolved a circuit split as to the validity of the implied false certification theory under the False Claims Act. In its highly anticipated decision, the Supreme Court upheld the theory but cautioned that courts should strictly enforce the FCA's materiality requirement.[2] Immediately following Escobar, it was unclear how defendants would be able to fend off implied false certification claims based on the Escobar standard. But the past year has shown that the heightened standard has teeth and that courts can, and will, dismiss FCA complaints on materiality grounds, even before discovery....

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