Federal False Claims Act & Whistleblower Lawyer

The federal statute can be found at 31 U.S.C. Sec. 3729.

The False Claims Act is a federal law which allows a private individual to file a federal lawsuit on behalf of the United States when the individual is aware of a company committing fraud against the United States. The lawsuit is filed under seal in U.S. District Court. The government (usually the U.S. Attorney’s Office for the district where the suit is filed) will then investigate the case and determine if it wants to “intervene” in (or takeover the case). The most common types of False Claims Act cases are discussed below.

• Health Care Fraud. Health care fraud is by far the most common type of False Claims Act case. Anytime a healthcare provider bills a government funded program, such as Medicare, Medicaid, or Tricare, there is the potential for fraud. While the most common form involves a provider’s improper billing practices, these cases can also involve kickbacks and off-label marketing.
• Defense Contractor Fraud. The False Claims Act was created in response to contractors taking advantage of the federal government during the Civil War. Since then, the government has routinely settled large False Claims Act cases against defense contractors for false billing or providing inferior procust. In 2009 for example, Northrop Grumman settled a case for $325 million for allegedly selling defective satellite parts to the government.
• Customs / Importer Fraud. One area that has garnered recent attention is customs fraud. On many imports into the United States, the importer is required to pay anti-dumping and countervailing duties on the goods. When the importer evades these duties by misrepresenting what the goods are or where they came from, the importer has submitted a false claim and be held liable under the False Claims Act. Our lawyers won the largest False Claims Act award in the Southern District of Georgia after a furniture company imported goods through Savannah without paying the requisite duties.

The False Claims Act has a qui tam provision,

which allows any private individual with knowledge of fraud against the United States to file suit. The whistleblower is referred to as the “relator” in qui tam actions

A whistleblower can expect to earn anywhere between 15% and 30%, depending on whether the government intervenes in the case. The False Claims Act allows a whistleblower to recover up to 30% of the amount of funds recovered by the government.

In cases where the government intervenes, however, the whistleblower can recover between 15% and 25% of the amount recovered.

In large cases, a single percentage point can make a significant difference. Oftentimes, the government will make an initial offer of around 18%. Your lawyer will need to negotiate with the government as why you should receive a larger percentage. You can increase your odds of getting a higher percentage by fully cooperating with the government early on in the case.

The average length of a complex False Claims Act case is 3 to 5 years.

False Claims Act cases can take a long time. On average, FCA cases take 3-5 years to resolve, and there are some cases that have taken more than 10 years. The quickest one should expect to resolve a complex FCA case is two years. A large chunk of this time is normally dedicated to the government investigating the claims and compiling evidence.

Yes, in most cases, you want the government to intervene even though this will likely lower the percentage of your award.

he reason for this is that the government’s intervention almost always increases the value of the case.The government’s investigation will usually lead to evidence that the whistleblower would never be able to get. This is because the government can subpoena documents and conduct depositions of people with intimate knowledge of the fraud. This means that the government can find additional instances of fraud, which can greatly increase the amount of money awarded to the whistleblower.

False Claims Act cases can also be fragile in court litigation. The law is often stacked against the whistleblower when it comes to motions to dismiss and motions for summary judgment. When the government intervenes, your whistleblower claims are much more likely to survive in court. The offending company knows this and is more likely to settle and to settle for a higher amount than if the government did not intervene.

In 2022, nearly 1,000 False Claims Act lawsuits were filed. Many of these cases will ultimately be declined by the government. The government declines to intervene in cases when it believes that the fraud claims are unviable, that the government’s resources are better spent elsewhere, or that the case should be investigated as a criminal matter.It is the job the of the whistleblower’s lawyer to convince the government to intervene in the False Claims Act case.

There are four primary factors that your lawyer will examine when determining whether the government will likely intervene in your case:

1. Amount of fraud. The government will normally not get involved in a case where the fraud amount is less than $1 – $2 million.
2. Proof of the fraud. The government will want to see documents which corroborate your story.
3. The level of harm. Fraud impacts patients, manufacturers, and more.
4. Ability to pay. The government will assess if the company can repay.

Yes, the False Claims Act has a retaliation provision which prohibits your employer from retaliating against you

for filing a lawsuit under the False Claims Act. Retaliation can take on many forms, including firing, demoting, reassigning, falsifying performance reviews, and lowering or changing compensation. If your employer retaliates against you, you can file an additional claim of retaliation under the False Claims Act.

The first step in the journey of being a whistleblower is to hire an experienced lawyer who can protect your rights and maximize a potential whistleblower award.

Our whistleblower lawyers have won some of the largest whistleblower awards while protecting our clients’ employment and reputations. You can call us at (855) 959-4003 or email us below for a confidential and free case evaluation. With offices in Alexandria, Virginia and Atlanta, Georgia, we represent whistleblowers across the nation.