Do you have evidence of government fraud, waste, kickbacks or other wrongdoing? If so, you don’t have to wait for the government to act. You can file a qui tam lawsuit on your own, and if you win, you’re entitled to a portion of the damages recovered. You’re also protected from retribution.
This is possible under the federal False Claims Act. That law allows whistleblowers with evidence of wrongdoing, corruption or fraud involving federal programs or contracts to sue private companies or individuals.
In these qui tam actions, the government can intervene and collect a percentage of any funds recovered through either a settlement or trial. If the government decides not to step in, whistleblowers can proceed on their own. The rewards in such cases typically amount to 25 to 30 percent of funds recovered.
That’s where the experienced attorneys at Burnette Shutt & McDaniel come in. We’ve spent more than a decade representing whistleblowers in False Claims Act cases.
It’s a complicated area of the law with exacting requirements and also strong protections for whistleblowers. There also are strict statutes of limitations setting time limits by which actions must be filed.
That’s why its important to work with a knowledgeable attorney such as the ones at Burnette Shutt & McDaniel from the start, in order to protect both your chances of winning and your reputation.
Examples of violations of the False Claims Act
A qui tam lawsuit requires that whistleblowers have actual evidence and personal knowledge of fraud. The actions are filed against a person or organization that files a false claim in order to collect government funds.
The areas covered are broad, but here are a few examples:
- Medicaid, Medicare or Tricare fraud, including misreporting pricing information or billing for unnecessary medical services.
- Bid rigging.
- Defense contractor fraud, including substituting cheaper parts.
- Healthcare fraud, which includes kickbacks to doctors, hospitals or pharmacists to prescribe certain drugs.
- Providing false data to a government agency or withholding negative information.
- Selling or distributing medications that don’t meet standards for safety, purity or strength.
- Contract fraud, including not disclosing any discounts or price breaks normally given to non-government customers.
- Program or grant fraud, where recipients overstate their qualifications or exaggerate the quality of services they provide.
- Financial fraud, including false Securities and Exchange Commission filings or Foreign Corrupt Practices Act filings that falsely certify compliance.
The Qui Tam False Claims Act process
All False Claims Act whistleblower lawsuits are filed under seal. That means the information is confidential. The company that’s the subject of the complaint won’t know at first. The whistleblower filing the lawsuit isn’t allowed to discuss it either.
Once the suit is filed, the government has 60 days to investigate and decide if it wants to step in. Though the changes of recovery are greater if the government intervenes, it doesn’t in most cases.
That doesn’t mean that the case is over, though. Whistleblowers can still pursue cases on their own, and many such lawsuits are successful.
Whistleblower protections
It’s scary sometimes to step forward and do the right thing. The False Claims Act acknowledges that whistleblowers are risking their reputations, livelihoods and careers. That’s why there are protections built into the law. Whistleblowers are shielded from:
- Written or oral reprimands
- Reassignment, including demotion
- Firing
- Resignation under duress
- Retaliatory lawsuits
The protections apply even if a False Claims Act action is never filed. Making a report of suspected fraud to supervisor has triggered the protections in certain cases. So has refusing to participate in a fraudulent scheme.
In fact, the whistleblower isn’t even required to know that triggering an investigation could lead to a False Claims Act action. Nor do whistleblowers have to mention the words “fraud” or “illegal” in discussing the activity they’re reporting.
Also, whistleblowers who are fired, demoted, harassed or discriminated against can be entitled to reinstatement, double back pay, litigation costs and attorney fees. Damages for emotional distress are possible, too.
Other wrongful termination or employment laws also may apply in addition to whistleblower protections under the False Claims Act.
Whistleblowers play a vital role in protecting the government and the taxpayers from fraud at the hands of unscrupulous contractors and companies. While it’s possible to pursue a whistleblower action under the False Claims Act on your own, an experienced attorney can help you give your qui tam lawsuit the best chance for success.
Contact Burnette Shutt & McDaniel today to see how we can help.