Supreme Courts Upholds Implied Certification Theory for False Claims

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In a unanimous decision, the Supreme Court ruled in Universal Health Services v. Escobar that the implied certification theory is a valid basis for False Claims Act liability. Under this theory, a government contractor’s claim or invoice can be held as fraudulent if the contractor “fails to disclose non-compliance with material statutory, regulatory, or contractual requirements” and the misrepresentation or misleading omission is “material to the Government’s payment decision.”

While the Court’s opinion, authored by Justice Thomas, was not the result the government contracts community was hoping for, the Court did invoke a more rigorous test of materiality than …read more

Read more here:: Government Contracting

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