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ARTICLE · 02 FEBRUARY 2017

Materiality Under FCA: The Lower Courts Grapple With Escobar's Meaning

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The Supreme Court's decision in Universal Health Services v. Escobar ex rel. United States sought to clarify the standard for materiality under the False Claims Act, but lower courts have already begun to adopt different interpretations.

United StatesGovernment, Public Sector

In the six months since the Supreme Court's decision on implied certification and materiality in Universal Health Services, Inc. v. United States ex rel. Escobar, lower courts have begun to apply the Supreme Court's analysis to a variety of fact patterns and thus have begun to debate whether Escobar simply reaffirmed the prior understanding of materiality under the False Claims Act (FCA) or instead established a new, more rigorous test for materiality. 136 S. Ct. 1989 (June 16, 2016).

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Originally published by Bloomberg Law

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