Day Pitney remains committed to providing quality legal counsel, while protecting our clients and employees, and transforming our communities into more just, equal and equitable spaces. For more information, please visit our COVID-19 Resource Center | Racial Justice and Equity Task Force.

Insights

Publications Events Blogs

The False Claims Act After Escobar: A Three-Part Test

Publisher: Business Crimes Bulletin
September 8, 2016
Day Pitney Author(s) Stanley A. Twardy, Jr.

Stanley A Twardy Jr. and Liz Latif wrote an article, "The False Claims Act After Escobar: A Three-Part Test," for the Business Crimes Bulletin. The article is about the decision in Universal Health Servs. V. United States ex rel Escobar, in which the Supreme Court provided a new framework for assessing false certification liability under the False Claims Act. The false certification theory of liability arises when a government contractor fails to comply with contractual provisions, statutes, or  regulations, and the contractor has either expressly or impliedly certified such compliance. Twardy and Latif explain Escobar’s three-part test for establishing such liability:

1) Does the request for payment contain a “specific” representation about the goods or services provided?

2) If yes,

                a) Was it false?  or

                b) Did the representation omit that the requestor had not complied with a statutory, regulatory, or contractual requirement, such that it made the representation a half-truth?

3) Was the misrepresentation material to the government’s payment decision?

Recommended
Related Professionals
Stamford, CT
T: (203) 977 7368