The Department of Justice declined intervention in the case, and the trial court in the District of Maryland dismissed the case for failure to state a claim, finding that Rostholder failed to allege that Omnicare made a false statement or engaged in fraudulent conduct. For the reasons described below, the Fourth Circuit affirmed the district court's dismissal. Fourth Circuit Distinguishes Materiality from Falsity The Fourth Circuit's decision in Rostholder is perhaps most notable for the clear distinction it draws between the "falsity" and "materiality" elements of an FCA claim so as not to "sanction use of the FCA as a sweeping mechanism to promote regulatory compliance." The court reiterated that "the correction of regulatory problems is a worthy goal, but is 'not actionable under the FCA in the absence of actual fraudulent conduct.'"