The False Claims Act (FCA) allows private individuals to sue on behalf of the United States to recover money that has been defrauded from the federal government. While the Supreme Court has yet to rule whether states and local governments can bring FCA claims, local governments, but not state governments, can be sued for making false claims against the federal government.
What exactly is a false claim? The question for the Supreme Court in Universal Health Services v. Escobar is whether a claim for reimbursement from the federal government containing no affirmative misstatements can be deemed false because the claimant failed to disclose that it has violated a requirement of the federal program. Technically, this is called the “implied certification” theory of legal falsity.