False Certification Theory Law and Legal Definition

According to false certification theory of false claims liability, a false statement or course of action is actionable under the False Claims Act. A claim arises whenever the government is asked to pay out money or to forfeit moneys due under the false statement or course of action. According to the false certification theory the essential elements of False Claims Act liability are: a false statement or fraudulent course of conduct, made with intent or knowledge of wrongdoing that was material, causing the government to pay out money or forfeit moneys due.

In a complaint under False Claims Act, 31 USCS § 3729, a complaint must allege false certification theory of liability which is predicated upon a false representation of compliance with a federal statute, regulation or a prescribed contractual term. [United States ex rel. Mikes v. Straus, 274 F.3d 687, 696 (2d Cir. 2001)].