Header graphic for print
Focus on Regulation

Understanding Escobar: The Supreme Court Endorses FCA Implied Certification, with Limits

A unanimous Supreme Court held in Universal Health Services, Inc. v. United States ex rel. Escobar (“Escobar”) that under the civil False Claims Act (FCA), an “implied certification” of compliance could serve as a basis for liability for treble damages and penalties, but only in certain circumstances, rejecting attempts to extend liability under this theory to include any violation of a statute, regulation, or contract term that could theoretically permit the government to deny payment of a claim. The boundaries of this highly anticipated FCA ruling will be the source of additional litigation in the coming months and years.

Watch the above video for additional insights from partners Jonathan Diesenhaus and Jessica Ellsworth on this case.