Supreme Court adopts “implied certification” theory in False Claims Act cases, rejects “condition of payment” requirement but requires materiality

by Ben Vernia | June 16th, 2016

On June 16, the Supreme Court issued its decision in <i>Universal Health Servs. v. United States ex rel. Escobar</i>, which was argued on April 19. In a unanimous opinion written by Justice Thomas, the Court affirmed the viability of an “implied certification” theory of liability under the False Claims Act. The Court rejected the petitioner company’s argument that only requirements expressly designated as conditions of payment could give rise to liability under the law, but required proof that “the defendant knowingly violated a requirement that the defendant knows is material to the Government’s decision” to pay the claim.

The decision can be found here.

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