One Step Closer to Building on Escobar

In a new client alert, Andy Liu and Jason Lynch of Nichols Liu discuss the Supreme Court’s request for the views of the Solicitor General  in Gilead Sciences, Inc. v. U.S. ex rel. Campie. “The case presents an opportunity for the Court to affirm the prevailing reading of Escobar: that the government’s continued approval and acceptance of goods or services, after learning of the alleged falsity, renders that falsity immaterial and precludes an FCA claim absent countervailing evidence,” they write.  “The Solicitor General must now advise the Court on whether certiorari is appropriate to answer a question not presented in Escobar: whether an FCA complaint must be dismissed, absent some countervailing evidence, if the Government knows about the alleged misrepresentations and yet continues to pay claims fully.”