The False Claims Act, 31 U.S.C. Section 3729 et seq., allows private individuals to bring a qui tam action against another who had defrauded the federal government by knowingly presenting a false claim for payment.

The Act has specific requirements a whistleblower (known as the “relator”) must follow in order to recover. The Act also limits who is eligible to file suit, how much he (or she) can recover, and under what circumstances. If a relator was involved in the false claims, the court has the discretion to limit his recovery and he will not recover at all if he is convicted of criminal conduct related to the suit. Cases filed as qui tam actions generally involve false claims that are presented to the government for payment or approval. These false claims may be accomplished through the submission of false records or statements.

Qui tam actions may be brought by employees, former employees, competitors, subcontractors, state and local governments, current and former federal employees, public interest groups, corporations, and other private organizations.

A false claim may involve a false record, receipt, statement or other representations made to the government. In such actions, qui tam plaintiffs file suit on behalf of themselves and the United States and, if successful, will be entitled to share in any recovery with the federal government.

Generally, any organization or person who uses federal money can be charged as a defendant in a qui tam action. The most common defendants include:

• Government contractors and subcontractors
• Health maintenance organizations (HMOs)
• Medical providers
• Private universities
• State and local government officials and agencies

A whistleblower must file a whistleblower suit under seal with a U.S. District Court, and the Justice Department then conducts an investigation of the facts involved in the complaint.

If a whistleblower plaintiff wins a qui tam suit alleging false claims, the whistleblower will be entitled to 15 to 30 percent of the government's total recovery, which includes damages for the false claims plus civil penalties that range from $5,000 to $10,000 per false claim. Plaintiffs who win under the Act also are reimbursed for expenses incurred, including attorney’s fees and costs.

Our success in this highly specialized area of the law has resulted in significant recoveries.

If you or a loved one has knowledge of wrongdoing that may lead to a whistleblower action, contact us today.