Unlocking Legalities: False-Claim Standards Continue To Evolve

The finer points of when exactly the US government can collect from a device company for selling it a bill of goods are under reconsideration, even as the fast pace of False Claims Act suits continues, attorneys with law firm Gibson Dunn concluded during a series of recent webinars.

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Can a manufacturer be held liable for violating the US False Claims Act if it never directly lied to the government? Some recent court cases suggest it’s possible, attorneys say.

The question was raised by the US Supreme Court’s 2016 Escobar decision, which held that a company could be held liable for FCA violation in some situations if it submitted a claim that falsely implied that the company complied with an important statutory, regulatory, or contractual requirement. In addition, the claim must make specific representations about the goods or services provided and the defendant’s failure to disclose non-compliance must make those representations “misleading half-truths

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