SCOTUS Poised to Rule on “Implied Certification” Under Federal False Claims Act

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In False Claims Act “Implied Certification” Update: Supreme Court Oral Argument Forecasts Continued Vitality of Controversial Doctrine, we, along with our colleague Danielle Vrabie, report on the recent oral argument before SCOTUS,supremecourt in Universal Health Services v. United States ex rel. Escobar, No. 15-7, a case expected to resolve the current split among federal courts of appeals on the so-called “implied certification” theory of liability under the federal False Claims Act (FCA). SCOTUS’ decision, whatever it is, will have an enormous impact on the federal contractor and subcontractor community. If SCOTUS follows the expansive interpretation of implied certification endorsed by the First Circuit in Escobar, then federal contractors and subcontractors will be vulnerable to the risk that the government will escalate any lack of contract compliance into an FCA investigation.

Additional Source: SCOTUS Expected To Resolve Circuit Split on Implied Certification Under FCA

Photo:  Ryan Wick, Supreme Court Room, Taken December 29, 2009 – Creative Commons