UPDATE: The Seventh Circuit recently issued one of the first appellate decisions applying the FCA’s materiality standard after Escobar, finding that the same incentive compensation ban at issue in Rose was not material. The university in Rose filed a notice with the district court on October 27, 2016 to notify the court of the decision. Read more in our post here.
We reported earlier this month on United States ex rel. Rose v. Stephens Institute, a post-Escobar implied false certification case in which a District Judge in the Northern District of California considered whether a university violated the FCA when it obtained funding from the U.S. Department of Education (DOE) by allegedly falsely certifying compliance with Title IV of the Higher Education Act, which prohibits universities receiving federal funding from providing incentive payments to student recruiters. The court denied the university’s motion to reconsider denial of its motion for summary judgment in mid-September, and the university moved to certify the district court’s order for immediate interlocutory appeal to the Ninth Circuit and to stay the case pending appeal.