• Supreme Court Rules that Contractors Can Be Liable for False Claims under the Implied Certifi cation Theory
  • August 9, 2016 | Authors: Lori Ann Lange; Richard T. Preiss
  • Law Firms: Peckar & Abramson A Professional Corporation - Washington Office; Peckar & Abramson A Professional Corporation - River Edge Office
  • On June 16, 2016, the United States Supreme Court in a unanimous opinion held that, under certain circumstances, a contractor can be liable for False Claims Act (“FCA”) violations under the implied certification theory. Universal Health Services, Inc. v. United States and Massachusetts ex rel. Escobar and Correa, No. 15-7, 579 U.S. --- (2016). The FCA prohibits, among other things, a person from knowingly submitting or causing to be submitted a false claim to the Government or knowingly making a false record or statement to get a false claim paid by the Government. Under the implied certification theory, a contractor’s claim is considered to contain an implied certification that the contractor complied with the requirements of the contract as well as all applicable laws and regulations. If that implied certification is false, the contractor can be held to have violated the FCA.