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Spotlight on the False Claims Act - 6 May, 2016

USA May 6 2016
Why it matters: This month we discuss two interesting court cases involving the False Claims Act (FCA). On April 19, 2016, the Supreme Court heard oral argument in Universal Health Services v. U.S. ex rel. Escobar, a case involving the issues of implied certification of compliance and legal falsity in an FCA context. This was the only FCA case as to which the Supreme Court granted certiorari this term, and the Supreme Court's decision will resolve a multicircuit split on these issues. We review the oral argument here. In addition, we discuss a recent Ninth Circuit decision addressing the question of whether the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (a.k.a. Fannie Mae and Freddie Mac, respectively) constitute "federal instrumentalities" for purposes of the FCA. Short answer: They don't. Last, the DOJ announced a couple of significant FCA resolutions in connection with FHA-insured mortgage loans and sleep apnea masks—read on for a recap.

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