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Materiality Rules: Escobar Changes the Game

Client Alert | 1 min read | 05.15.17

On May 1, 2017, the Third Circuit affirmed the district court’s dismissal of a relator’s claims in United States ex rel. Petratos, et al. v. Genentech Inc. in a False Claims Act (FCA) case in which the relator alleged that pharmaceutical manufacturer Genentech had suppressed data about a cancer drug’s side effects. Applying the materiality analysis from the Supreme Court’s decision in Universal Health Servs., Inc. v. United States ex rel. Escobar, the Third Circuit “join[ed] the many other federal courts that have recognized the heightened materiality standard after [Escobar]” and found that the relator failed to allege that Genentech made misrepresentations that were material to government’s decision to pay claims. The Third Circuit’s decision in Petratos is just one of the nearly 100 court opinions that have cited Escobar in the eleven months since the Court’s landmark ruling on the on the implied-certification theory of liability. In a “Feature Comment” published in The Government Contractor, C&M attorneys analyze some of the key cases and explore the developing trends in the wake of Escobar.

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Client Alert | 7 min read | 11.05.26

2026 State Attorney General Elections: What Businesses Should Expect

As of November 4, 2026, the state attorney general elections point to increased enforcement in 2027, particularly in consumer protection, antitrust, AI, health care, and data centers.[1] Businesses should prepare for more investigations under existing laws and proposals for new legislation or rules. Campaign commitments indicate priorities, but their timing and implementation remain uncertain.[2]...