Supreme Court’s “Demanding” Materiality Standard Provides Some Protection from False Claims Act

    View Author June 2016

    On June 16, 2016, the US Supreme Court issued its eagerly awaited opinion in Universal Health Services v. Escobar. The unanimous decision about the False Claims Act (FCA) will impact every provider of goods and services to the federal government, from defense industry contractors to life sciences companies to healthcare providers. In addition, the ruling likely will affect providers of goods and services to state governments, whose courts often follow FCA case law for similar state statutes. Although the decision provides some protection from FCA whistleblowers, providers still must create vigorous compliance programs in order to prevent potentially ruinous liability.