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A citizen can file litigation against any entity that has defrauded the U.S government. Sanctioned under Title 31 of the United States Code, the False Claims Act can offer substantial financial rewards to individuals that provide previously undisclosed information that leads to a settlement or judgment against the defendant.

• Submitting a false bill or statement designed to receive an unearned payment from the government.
• Holding or concealing property rightfully belonging to the government.
• Conspiring with another individual or entity to file a false claim with the government.
• Knowingly purchasing property owned by the government through a third party.
• Submitting a fraudulent receipt to the government for its own property.
• Making false or misleading statements to avoid paying a legitimate debt or delivering property that is owed to the government.

Filing Claims

Litigation filed under the False Claims Act is extraordinarily complex and requires the services of a qualified qui tam attorney. When the lawsuit is filed, the court case is placed under seal in District Court. The U.S attorney is given 60 days to review the case and investigate the alleged fraud and determine its merit. At that point, the government either assumes responsibility for the case or declines further involvement. If the government does not become involved, the relator can continue to litigate the case on their own.

Defendants have become increasingly skilled at erecting barriers to discourage plaintiffs from pursuing remedies in false claims cases. Lawsuits are routinely challenged with motions for dismissal as the defense argues that the criterion for the 'original source' distinction has not been met. Ambiguous language in the False Claims Act can disqualify assertions that were 'based upon' publicly disclosed information. This includes sources such as hearings, investigations and the media. The use of this strategy typically results in long delays as researchers scour the internet and government sources for some vestige of data that could tangentially link the claim to the public domain.

Often the defendant will use tactics that attempt to distort the truth behind a smokescreen counter offensive. They may contend that the relator knowingly withheld information about the fraud over an extended period so that he might profit from its disclosure. Principally in cases where the whistleblower continues to work at the company accused of the fraud, counter suits may be brought against the plaintiff in an attempt to delay the case or compel a dismissal.


Remedies for Whistleblowers

Successful qui tam outcomes can result in substantial settlements or judgments. The False Claims Act allows for a reward of 15-25% for the relator if the government intervenes in the lawsuit. If the government resists involvement, the plaintiff may decide to pursue the case alone and will be entitled to 25-30% of the award. A qui tam attorney can evaluate the strength of the complaint and protect the privacy, rights and interests of those clients with a legitimate whistleblower grievance.

 

Click on the following links to read more on qui tam:

Preparing for False Act case - Whistleblower Law Blog
Liability for False Claims Acts - 31 USC 3729 -  Whistleblower Law Blog

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