‘Implied Certification’ Theory Under the False Claims Act to be Reviewed by U.S. Supreme Court

The U.S. Supreme Court recently granted certiorari in Universal Health Services, Inc. v. United States ex rel. Escobar, No. 15-7, to review the “implied certification” theory of liability under the False Claims Act.  In recent years, that theory has been applied in a wide variety of circumstances with increased frequency, exposing defendants to substantial damages and penalties.  Because of this, the Supreme Court’s decision could result in significant changes to the scope of False Claims Act liability.

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