Fourth Circuit Adopts "Implied Certification" Theory Of False Claims Act Liability And Examines Materiality Under That Theory

On January 8, 2015, the United States Court of Appeals for the Fourth Circuit issued a significant opinion on the False Claims Act ("FCA") in United States ex rel. Badr v. Triple Canopy, Inc., No. 13-2101 (4th Cir. Jan. 8, 2015). In this case, private security company Triple Canopy, Inc. contracted with the government to provide security services at a U.S. military airbase, then falsified its employees' marksmanship scorecards to cover up their failure to meet the required qualifications. Although the district court had dismissed the government's claims, the Fourth Circuit reversed, and in so doing it adopted the "implied certification" theory of FCA liability and issued an important decision analyzing materiality as related to that theory.