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Implied Certification Theory

Chris Roux and John Hanover Published in The Construction Lawyer on Implied False Certification Liability

January 24, 2018 By Alston Government Contracts Team

Alston & Bird partners Chris Roux and John Hanover had their article, “Implied False Certification Liability Under the False Claims Act: How the Materiality Standard Offers Protection after Escobar,” published in the Winter 2018 edition of The Construction Lawyer. The article takes an in-depth look at the viability of implied false certification claims under the False Claims Act by examining their use before and after the U.S. Supreme Court’s Escobar decision, the key elements of the decision, and how varying interpretations of the decision apply to the construction industry. Readers [...]Read more

Filed Under: Advice to Contractors & Grant Recipients, Government Contract-Related Investigations and the False Claims Act, Public Construction Tagged With: False Claims Act (FCA), Implied Certification Theory, Press, U.S. Supreme Court, Universal Health Services Inc. v. United States ex rel. Escobar

Circuit Court Signals Potential Impacts of Escobar

July 20, 2016 By Alston Government Contracts Team

Lower courts have begun grappling with the implications of the U.S. Supreme Court’s decision in Universal Health Services, Inc. v. United States ex rel. Escobar. In U.S. ex rel. Sheet Metal Workers International Association v. Horning Investments, LLC, a union filed a qui tam lawsuit against Horning Investments, LLC. Horning, a roofing company, was acting as a subcontractor for a construction project for the U.S. Department of Veterans Affairs. The union claimed that Horning violated the False Claims Act by failing to pay union workers in accordance with the Davis-Bacon Act. Under the Davis-Bacon [...]Read more

Filed Under: Government Contract-Related Investigations and the False Claims Act, Public Construction Tagged With: Davis-Bacon Act, False Claims Act (FCA), Implied Certification Theory, Qui Tam, Seventh Circuit Court of Appeals, Universal Health Services Inc. v. United States ex rel. Escobar

The Supreme Court Weighs In on the Implied Certification Theory of False Claims Act Liability

June 20, 2016 By Jessica Sharron

The Supreme Court has handed the Department of Justice and qui tam relators a bigger hammer to wield against government contractors with its opinion in Universal Health Services, Inc. v. United States ex rel. Escobar, confirming the viability of the implied certification theory of False Claims Act (FCA) liability. In this case, the relators filed a qui tam action alleging that a provider of mental-health services in Massachusetts violated the FCA when it submitted Medicaid reimbursement claims that included representations about the services provided, but failed to disclose that the service [...]Read more

Filed Under: Advice to Contractors & Grant Recipients, Government Contract-Related Investigations and the False Claims Act, Public Health Care Contracts Tagged With: False Claims Act (FCA), Implied Certification Theory, Qui Tam, U.S. Department of Justice (DOJ), Universal Health Services Inc. v. United States ex rel. Escobar

Supreme Court Hears Oral Arguments in Significant False Claims Act Case

April 25, 2016 By Jeffrey Belkin

Our colleagues Jackie Baratian and Jason Popp summarize here the oral argument for Universal Health Services v. United Sates ex rel. Escobar heard by the U.S. Supreme Court on Tuesday, April 19th, laying out the various arguments presented by counsel and addressed by the Justices.  As they note, much of the argument focused on the Restatement of Contracts, as a source of “fraud” in contracting common law, to help draw a distinction between an implied promise and an immaterial unspoken performance detail.  The Justices also took note of the decision in Halper, in which the Supreme Court in [...]Read more

Filed Under: Advice to Contractors & Grant Recipients, Government Contract-Related Investigations and the False Claims Act, Public Health Care Contracts Tagged With: False Claims Act (FCA), Implied Certification Theory, Qui Tam, U.S. Supreme Court, Universal Health Services Inc. v. United States ex rel. Escobar

Supreme Court to Rule on the Implied Certification Theory

March 14, 2016 By Andrew Howard

The U.S. Supreme Court has scheduled oral arguments in a case that will have significant implications for cases brought under the False Claims Act (FCA). In Universal Health Services v. United States ex rel. Escobar, No. 15-7, the Court will hear argument on two important questions. First, whether the “implied certification” theory of legal falsity is viable under the FCA, a question on which the circuit courts of appeal are divided. If the Court concludes the implied certification theory is viable, then the second issue it will consider is whether government contractors’ reimbursement claims [...]Read more

Filed Under: Advice to Contractors & Grant Recipients, Government Contract-Related Investigations and the False Claims Act Tagged With: False Claims Act (FCA), Implied Certification Theory, U.S. Supreme Court, Universal Health Services Inc. v. United States ex rel. Escobar

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This blog is a service of Alston & Bird’s Government Contracts team and provides insights on cases, rules, trends, and latest developments in local, state, and federal government contracting. Our attorney observations include analysis of investigations, litigation, protests and issues affecting present or prospective prime contractors, subcontractors, and grant recipients across various industries.

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