The federal False Claims Act is the government’s chief fraud-fighting tool, and a lucrative one at that. On Tuesday, the U.S. Supreme Court wrestled with how false a claim for payment must be in order to earn the law’s punishing penalties.

In Universal Health Services v. Escobar, a major health insurer, backed by medical, pharmaceutical, private colleges, criminal defense groups and others, attacked a theory of liability known as “implied certification.”

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