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An Underused, Powerful Tool Can Fend Off False Claim Act Charges

Article July 24, 2026

Bloomberg Law

The Bottom Line

  • The False Claims Act’s knowledge of materiality requirement is an important and underused tool for defendants facing alleged FCA liability.
  • The one recent circuit case limiting this requirement to implied false certification cases is unsound.
  • Knowledge of materiality may be a particularly useful defense for companies under investigation for FCA liability based on alleged DEI or other civil rights related violations.
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