On June 25, 2020, in a partial win for parties supported by WLF, the Eleventh Circuit affirmed in part a trial court’s dismissal of a $350 million False Claims Act verdict against a network of nursing homes. A jury concluded that the nursing homes defrauded the government. The trial court vacated the jury’s verdict, however, on the ground that no evidence showed that any misstatement by the nursing homes was material to the government’s decision to pay any of the nursing homes’ Medicare or Medicaid claims. The trial court relied heavily on the Supreme Court’s recent decision in United Health Services, Inc. v. United States ex rel. Escobar, which holds that the government cannot establish materiality merely by declaring that a misstatement is material. In its brief, WLF urged the Eleventh Circuit to faithfully apply Escobar and to affirm the trial court’s decision to vacate the $350 million award. Although it reversed the judgment on the Medicare claims, the Eleventh Circuit followed WLF’s reasoning, and affirmed, as to the Medicaid claims.


Eleventh Circuit decision

WLF Amicus Brief