DOJ Supports Whistleblowers in Escobar Interpretation, Reinforcing Materiality Standard
On September 21, 2016, the U.S. Department of Justice (DOJ) filed a significant Statement of Interest in a pending False Claims Act case, clarifying how the Supreme Court’s decision in Escobar should be applied. The DOJ’s filing in U.S. ex rel. Williams v. City of Brockton, Civil Action No. 12-12193-IT (D. MA), offers a strong endorsement of whistleblower rights and rejects overly narrow interpretations of the materiality standard that would undermine qui tam lawsuits.
Materiality Standard Clarified in Favor of Whistleblowers
The DOJ told the court that Escobar does not require whistleblowers to prove misconduct was material in every possible way. Instead, the Department reaffirmed that alleged fraud is material if it has a natural tendency to influence the government’s decision to pay a claim. This stance directly counters the defense’s argument that only all-encompassing materiality should qualify—and marks a win for whistleblower lawsuits across the country.
Major Support for Qui Tam Lawsuits
By intervening in this case, the DOJ reinforced the legal foundation supporting qui tam lawsuits under the False Claims Act. The filing reaffirms that whistleblowers do not need to prove perfection in their claims to survive dismissal—they simply need to allege misconduct that could reasonably affect a government payment decision. This broader and fairer interpretation strengthens the ability of whistleblowers to hold fraudsters accountable.
See the entire Statement of Interest by clicking here.
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This article is for informational purposes only and should not be considered legal advice.