Critical Considerations of Implied Certification Under the FCA

Posted on April 7, 2020 in False Certification, FCA, Materiality

In a recent case out of Kansas, the Tenth Circuit reiterated the importance of the FCA’s materiality and scienter requirements that the Supreme Court set forth in Escobar: FCA claims must satisfy materiality and knowledge requirements—both of which are rigorous and strictly enforced. A whistleblower must prove knowledge in an implied... Continue Reading →

Tags: Coffman, Escobar, False Claims Act, FCA, materiality

Government Traps, Zaps and Zingers

Posted on January 15, 2018 in Legal Updates, Materiality

In an opinion loaded with linguistic hooks, the United States District Court for the Middle District of Florida recently reinforced the Supreme Court’s holding in Escobar, enthusiastically highlighting the importance of materiality and scienter in FCA cases. Background In U.S. ex rel. Ruckh v. Salus Rehabilitation, LLC, et al., Relators... Continue Reading →

Tags: Escobar, False Claims Act, FCA, materiality

Second Circuit Falls in Line for FCA Pleading Requirements

Posted on October 9, 2017 in False Certification, Legal Updates, Materiality

On September 7, 2017, the Second Circuit realigned its stance on false certifications under the False Claims Act (“FCA”) in light of the Supreme Court’s decisions in Universal Health Services, Inc. v. United States ex rel. Escobar, 136 S.Ct. 1989, 195 L.Ed.2d 348 (2016). BACKGROUND In the initial action, relators brought a qui... Continue Reading →

Tags: 2nd Circuit, Bishop, certification, Escobar, express, False Claims Act, FCA, implied, pleading, Second Circuit, Wells Fargo

Third Circuit Issues Decision Explaining Pleading Standards and Materiality After Escobar

Posted on May 10, 2017 in False Certification, Materiality

On May 1, 2017, the United States Court of Appeals released an important decision interpreting the False Claim Act’s (“FCA’s”) materiality requirement in light of the Supreme Court’s 2016 decision in Universal Health Services Inc. v. United States ex rel. Escobar. The case, United States ex rel. Petratos v. Genentech, revolved... Continue Reading →

Tags: Escobar, Genitech, Petratos, Universal Health Services

Escobar, Back at the First Circuit

Posted on November 23, 2016 in False Certification, Materiality

Yesterday, the First Circuit Court of Appeals issued a new opinion in Universal Health Services, Inc. v. United States ex rel. Escobar. Applying the materiality test enunciated by the Supreme Court in June, the First Circuit reaffirmed its previous decision that the whistleblowers’ complaint sufficiently stated a claim under the... Continue Reading →

Tags: Escobar, First Circuit, Implied False Certification, materiality

Seventh Circuit: Implied Certification Claims Remain a Heavy Lift

Posted on October 25, 2016 in Case Analysis, Conditions of Participation, False Certification

In light of the Supreme Court’s recent decision in Universal Health Services v. Escobar, the Seventh Circuit revisited its prior ruling in United States ex rel. Nelson v. Sanford-Brown, Ltd, a case alleging that a college receiving federal subsidies violated the False Claims Act (“FCA”) by maintaining discriminatory recruiting and... Continue Reading →

Tags: certification, Escobar, False Claims Act, FCA, implied

The Eighth Circuit Applies Escobar Materiality Test

Posted on October 20, 2016 in Materiality

The Eighth Circuit Court of Appeals yesterday applied the materiality standard enunciated by the Supreme Court in Universal Health Services, Inc. v. United States ex rel. Escobar to a False Claims Act (“FCA”) case alleging fraudulent inducement. In United States ex rel. Miller v. Weston Educational Inc., d/b/a Heritage College, two whistleblowers alleged Heritage College... Continue Reading →

Tags: Escobar, False Claims Act, Heritage College, materiality, Weston Educational

Government Challenges “Materiality” Standard of Escobar

Posted on September 6, 2016 in False Certification, Government Intervention

Ever since the Supreme Court’s June 16, 2016 decision in Universal Health Services, Inc. v. United States ex rel. Escobar, a False Claims Act (“FCA”) case upholding the theory of implied certification, significant discussion has commenced regarding the Court’s “new” FCA materiality standard. How the appellate courts define materiality under... Continue Reading →

Tags: Escobar, false certification, False Claims Act, FCA, government, implied certification, Marsteller, material, materiality, Tilton, Universal Health Services

Supreme Court Accepts Implied Certification – With a Twist

Posted on June 16, 2016 in Case Analysis, False Certification

The U.S. Supreme Court issued its decision today in Universal Health Services, Inc. v. United States ex rel. Escobar, and it will have an enormous effect on False Claims Act (“FCA”) cases throughout the nation. In Escobar, the FCA case was based upon the theory that counseling was provided by practitioners... Continue Reading →

Tags: Escobar, false certification, Implied False Certification, United States Supreme Court, Universal Health Services, USSC