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Contractors Get Partial Win at Supreme Court on Fraud Suits

  • Supreme Court ruling is mixed for Universal Health Services
  • Court sets ‘demanding’ standard for False Claims Act lawsuits
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The U.S. Supreme Court on Thursday limited the reach of a whistle-blower law designed to ferret out fraud, in a mixed ruling for health-care companies and other government contractors.

The justices unanimously told a lower court to revisit a ruling that let Universal Health Services Inc. be sued under the U.S. False Claims Act for allegedly using unlicensed and unsupervised staff at a counseling center in Massachusetts. The suit is being pressed by the parents of a girl who died of a seizure after being treated at the facility.