“Would You Rather…” – Escobar’s Demanding Materiality Standard or Actual Causation?
By EsqSocial Corporation 01/02/21
According to a recent decision in United States ex rel. Scollick v. Narula, Case No. 14-cv-1339 (D.D.C. Nov. 6, 2020), the fraudulent inducement theory of False Claims Act (“FCA”) liability does not require plaintiffs to satisfy the “demanding” materiality standard set forth in Universal Health Services, Inc. v. United States ex rel. Escobar, 136 S. Ct. 1989 (2016). Though that may sound like good news for plaintiffs, it is not. The fraudulent inducement theory holds that fraud in a...
By: Sheppard Mullin Richter & Hampton LLP