August 27, 2018 / 8:14 PM / 5 months ago

9th Circuit says SCOTUS test for whistleblower claims is mandatory

(Reuters) -

A U.S. appeals court has ruled that a two-part test created by the U.S. Supreme Court setting the standard for analyzing whistleblower claims must be applied in cases when plaintiffs allege that companies implicitly made false statements while seeking payments from the government.

A three-judge panel of the 9th U.S. Circuit Court of Appeals on Friday said former admissions officers at Academy of Art University in San Francisco had adequately alleged that the school violated the False Claims Act when it applied for financial aid payments from the government after paying the officers illegal bonuses if they met enrollment targets.

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