Implied False Certification Theory Fails in FCA Case Against Billing Agent

A court in the Southern District of New York recently released an important decision applying the Supreme Court’s Escobar ruling to a qui tam action involving percentage fee arrangements for billing agents.  Among other claims, the City of New York and its billing agent, Computer Sciences Corporation, allegedly used an illegal incentive-based compensation arrangement for CSC’s services when billing New York Medicaid for services provided to eligible children under New York’s Early Intervention Program.