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Eighth Circuit Considers Materiality Under the FCA Following the Supreme Court’s Escobar Decision

On October 19, 2016, the Eighth Circuit issued one of the first post-Escobar opinions addressing materiality under the False Claims Act (“FCA”). In United States ex rel. Miller v. Weston Educational, Inc, No. 14-1760, 2016 WL 6091099 (8th Cir., October 19, 2016), the Eighth Circuit considered a fraud in the inducement claim arising from a college’s allegedly false promise to maintain accurate records bearing on student eligibility for federal funding. The court found that the recordkeeping requirement was material because, among other things, it was expressly established as a condition of payment and there was evidence that the government actually relied on the records in assessing payment eligibility. Continue

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