In the August issue of the IADC Committee Newsletter, Jane Duke summarizes a recent United States Supreme Court case dealing with the implied certification theory of liability under the False Claims Act. While the case arose in the healthcare field, it is significant for all suppliers who submit claims for payment to the United States government. Under this new decision, the United States Supreme Court unanimously held that implied certification was a valid theory of recovery under the FCA. However, in order to keep the FCA from becoming a mere regulatory enforcement tool, the Court imposed a requirement of "materiality" of the condition (i.e., would the government have refused to pay the claim had it known of the underlying regulatory violation) before liability can attach.
The Supreme Court Weighs In on Implied Certification of FCA Liability