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

In a unanimous opinion in Universal Health Servs. v. United States ex rel. Escobar, 195 the Supreme Court provided a new framework for assessing false certification liability under the False Claims Act (FCA).

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In a unanimous opinion in Universal Health Servs. v. United States ex rel. Escobar, 195 L. Ed. 2d 348 (U.S. 2016), the Supreme Court provided a new framework for assessing false certification liability under the False Claims Act (FCA). The FCA creates civil liability for any person who knowingly submits a false claim to the government or knowingly makes a false record or statement to get a false claim paid by the government. It defines a “claim” as a demand for money or property made directly to the federal government or to a contractor, grantee, or other recipient if the money is to be spent on the government’s behalf in anticipation of reimbursement by the government.

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