Eighth Circuit Applies Escobar's Materiality Standard
Client Alert | 1 min read | 10.24.16
In U.S. ex rel. Miller v. Weston Educ. Inc. (Oct. 19, 2016), the Eighth Circuit became the first appellate court to apply the materiality standard recently articulated by the Supreme Court in Escobar (discussion of Escobar available here), holding that defendant’s promise to keep accurate grade and attendance records was material in inducing the government to enter into an agreement under the Higher Education Act. The court rejected defendant’s argument that no individual false record caused payment by the government, reasoning instead that the false promise to keep accurate records was material based on the express regulatory conditions of participation, their reasonable importance to payment, and evidence that the government had terminated other institutions that falsified similar records.
Insights
Client Alert | 1 min read | 01.21.25
Contractor Business Systems: Out With the Old, In With the New (Terminology)
On January 17, 2025, the Department of Defense (DoD) issued a final rule replacing the term “significant deficiency” in the Defense Federal Acquisition Regulation Supplement (DFARS) with the term “material weakness” for use in reviews of contractor business systems. Effective immediately, a material weakness is defined as “a deficiency or combination of deficiencies in the internal control over information in contractor business systems, such that there is a reasonable possibility that a material misstatement of such information will not be prevented, or detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is probable or more than remote but less than likely.”
Client Alert | 4 min read | 01.21.25
Client Alert | 6 min read | 01.21.25
DOJ and FTC Issue New Antitrust Guidelines Regarding Business Practices That Impact Workers
Client Alert | 5 min read | 01.21.25
