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Category: False Statement

False Statement / Implied Certification

7 Jul, 2015

Seventh Circuit Rejects Implied Certification Theory of FCA Liability

Deepening a circuit split, the Seventh Circuit has joined the Fifth Circuit in rejecting the implied false certification theory of liability under the FCA.  United States v. Sanford-Brown, Ltd., No. 14-2506 (7th Cir., June 8, 2015).  The Fourth, Ninth, Tenth and District of Columbia Circuits have allowed implied false certification claims. The implied false certification theory holds that when an entity enters into an agreement...

False Statement

24 Mar, 2015

First Circuit Takes “Broad View” of Falsity for Pleading Purposes

In a break with other Circuits, the First Circuit recently reaffirmed its broad definition of a “false statement’ under the False Claims Act.  United States ex rel. Escobar v. Universal Health Services, Inc., No. 14-1423 (1st Cir. Mar. 17, 2015).  Notably, the court continues to take a “broad view of what may constitute a false or fraudulent statement to avoid ‘foreclosing FCA liability in situations...