FCA Materiality May Return to High Court


13 Mar 2018
Reprinted with permission.

Although the Supreme Court ruled on False Claims Act (FCA) materiality requirements in Universal Health Services v. United States ex rel. Escobar, materiality issues continue to be litigated. In their Law360 analysis, Alex Ward, Daniel Chudd, Sandeep Nandivada, and Victoria Dalcourt discuss recent U.S. Courts of Appeal decisions that have added additional nuances to the Supreme Court’s guidance regarding government acquiescence. The general rule is that continued post-violation payments and inaction by government agencies are evidence of immateriality and can signal government acquiescence to the noncompliance. The Courts of Appeal decisions show, however, that this acquiescence can be walked back.



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