Qui Tam Whistleblower Legal Rights Combating Fraud

False Claims Act and Qui Tam Actions

The False Claims Act is a long-standing statute that was signed into law by Abraham Lincoln in 1863 to combat fraud perpetrated on the Union during the Civil War. Under the False Claims Act, sometimes referred to as the "Lincoln Law," private citizens who have information that their employer is defrauding the government may bring a "qui tam" lawsuit, also called a "qui tam action," to assist the government in recovering any lost money. The name of the lawsuit, "qui tam," is a shortened version of the Latin phrase meaning "he who brings a case on behalf of the King, as well as for himself." The qui tam lawsuits are a mechanism by which private citizens can assist the government in combating fraud by filing a lawsuit on the government's behalf in order to recover money lost in fraudulent claims.

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Bringing a Qui Tam Action

The private citizen does not have to be harmed personally to be able to file a qui tam action. The private citizen may submit a qui tam action where he or she has information that the defendant has knowingly submitted or caused the submission of false or fraudulent claims to the United States. Whistleblower cases traditionally involved defense and military contracts. Currently, many qui tam actions deal with fraud involving the health care industry, including Medicare and Medicaid fraud. According to statistics from the public interest group, Taxpayers Against Fraud, approximately 80% of False Claims Act cases that are filed deal with the health care industry. Qui tam actions have become a prominent force in the government's fight against fraud, as recoveries under the False Claims Act have totaled over $17 billion since the amendments to the False Claims Act in 1986.

Money Damages in Qui Tam Lawsuits

The private citizen, called a "relator" and also commonly referred to as a "whistleblower," has an incentive under the False Claims Act to come forward with information about fraud. The relator who brings the qui tam lawsuit may be entitled to a percentage of the money that is recovered by the government in the action. The amount that the whistleblower collects is generally between fifteen and thirty percent of the total amount recovered by the government, depending on whether or not the government intervenes in the lawsuit. The percentage of the recovery that the relator receives is based upon the total amount recovered by the government, and not just the amount of damages that the government actually suffered. If the government decides to intervene in the qui tam action, the relator may be entitled to somewhere between fifteen and twenty-five percent of the recovery depending on the individual's involvement in the action. If the government elects not to intervene in the action, the relator may continue the case on his or her behalf, and may be entitled to between twenty-five and thirty percent of the recovery, along with reasonable expenses and attorney's fees. In most cases where the defendant has defrauded the government, there are civil penalties ranging from five thousand to ten thousand dollars, plus three times the amount of damages suffered by the government per claim.

Whistleblower Protection from Retaliation

Relators who bring qui tam actions are protected, under provisions of the False Claims Act, from retaliation or harassment by their employer. A relator that is the victim of retaliation by their employer may be entitled to damages from the employer. These damages may include reinstatement to the place of employment, including the same seniority status, and the whistleblower may receive two times the amount of lost back pay, including any interest. The relator may also qualify to receive additional special damages.

Seeger Weiss LLP and Qui Tam Actions

Seeger Weiss LLP actively pursues claims on behalf of persons who report fraud on the federal and state governments, under the Federal False Claims Act and corresponding state laws that provide causes of action for and compensation to relators who provide information about the fraud. Seeger Weiss handles a wide variety of whistleblower claims with particular expertise in combating fraud by the health care and pharmaceutical industries.

Consultations with a Whistleblower Attorney

If you would like to discuss your rights involving a possible qui tam or whistleblower lawsuit, or if you have information about a possible qui tam action that you would like to share with us, please fill out the free case evaluation form and a member of Seeger Weiss LLP's experienced staff will call you to discuss your potential rights concerning a qui tam lawsuit. Attorney consultations incur no obligation on your part and all initial consultations are free of charge and do not create an attorney-client relationship.