News & Analysis as of

Federal Contractors Materiality Fraud

Wiley Rein LLP

Supreme Court Decision Could Galvanize Prosecutions of Government Contractors

Wiley Rein LLP on

The U.S. Supreme Court’s May 22 decision in Kousisis v. United States could have wide-ranging implications for criminal and civil fraud cases against government contractors going forward. The Court ruled that a government...more

WilmerHale

Supreme Court Rejects Economic-Loss Requirement for Wire Fraud but Underscores Materiality as a Limiting Element of Federal Fraud...

WilmerHale on

On May 22, 2025, the Supreme Court unanimously declined to limit federal wire fraud to cases involving economic loss to the victim, upholding convictions of two government contractors who obtained contracts from a state...more

Miles & Stockbridge P.C.

California District Court Issues First False Claims Act Decision Involving the DFARS Cybersecurity Rule

As predicted, a recent decision from the Federal District Court for the Eastern District of California is the first sign of a new, and potentially enormous wave, of Civil False Claims Act, 31 U.S.C. §§ 3729-33 (“FCA”) actions...more

Morgan Lewis

Federal Court Strikes Massive False Claims Act Verdict Following Landmark Escobar Ruling

Morgan Lewis on

The ruling in Universal Health Services, Inc. v. Escobar "rejects a system of government traps, zaps, and zingers that permits the government to retain the benefit of a substantially conforming good or service but to recover...more

Alston & Bird

Implied False Certification Liability Under the False Claims Act: How the Materiality Standard Offers Protection after Escobar

Alston & Bird on

The False Claims Act (FCA), initially enacted in 1863 during the Civil War, was sponsored by the Lincoln administration to curtail the rampant fraud and excessive profiteering being perpetuated by government contractors, who,...more

Troutman Pepper Locke

Materiality Is the New Condition of Payment: The Implied False Certification Theory After Escobar

Troutman Pepper Locke on

The Supreme Court has made it clear that, even at the pleadings stage, relators (or the government) must plead facts to support materiality with plausibility and particularity. For False Claims Act (FCA) defendants who...more

McAfee & Taft

Supreme Court ruling potentially expands false claims liability for healthcare providers

McAfee & Taft on

In a much-anticipated decision, the U.S. Supreme Court ruled recently that the implied false certification theory may form the basis for liability under the False Claims Act (FCA), resolving a split of among the federal...more

Hinshaw & Culbertson LLP

Supreme Court Case Expands False Claims Act Liability

Summary of Decision - On June 16, 2016, the United States Supreme Court decided a case which could have significant impact on healthcare providers. In Universal Health Services Inc. v Escobar, the Court expanded...more

King & Spalding

Universal Health Services v. Escobar

King & Spalding on

On Thursday of last week, the Supreme Court for the first time addressed the “implied certification” theory of liability under the False Claims Act. The Court ruled unanimously that the theory is valid in certain...more

Mintz

Supreme Court Adopts Implied False Certification Theory in Universal Health Services v. United States ex rel. Escobar But Imposes...

Mintz on

On June 16, 2016, a unanimous Supreme Court issued its long-awaited decision in Universal Health Services v. United States ex rel. Escobar (“Escobar”). The Court ruled that under certain circumstances the theory of “implied...more

Skadden, Arps, Slate, Meagher & Flom LLP

"In Escobar, Supreme Court Upholds False Claims Act’s Implied Certification Theory"

On June 16, 2016, the U.S. Supreme Court in Universal Health Services v. United States ex rel. Escobar unanimously upheld the implied certification theory of False Claims Act (FCA) liability. The Court ruled that a party can...more

Mintz - Health Care Viewpoints

The Supreme Court Adopts Broad Scope of False Claims Act Liability

A unanimous Supreme Court issued its long-awaited and closely watched decision today on the scope of the False Claims Act (“FCA”), and the Court affirmed the FCA’s long reach. Universal Health Services, Inc. v. United States...more

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