False Claims Act
The False Claims Act (also called the “Lincoln Law”), 31 U.S.C.S. § 3729, allows a private individual or whistleblower with knowledge that fraud has been committed against the federal government to file a suit on behalf of the government and against the defrauding party. A private individual may file a suit if he has information that the defendant knowingly submitted, or caused to be submitted, a false claim to the government. The information must not be public knowledge. A complaint under the False Claims Act must be sealed and must be kept confidential until the seal is lifted. These days, the majority of False Claims Act cases involve health care fraud claims.
Qui tam actions
The term "qui tam" refers to a writ, filed by a private individual who assists a prosecution, to receive all or part of any penalty imposed. Under the False Claims Act, private citizens may file actions, as qui tam actions plaintiffs, against persons who have defrauded the federal government. The Act provides rewards for qui tam plaintiffs, and the reward amount and eligibility for it varies, depending on the circumstances. Under the Act, a qui tam plaintiff may receive 15-25% of the total government recovery and may recover attorney fees. In order to bring an action under the False Claim Act, qui tam plaintiffs must be represented by counsel. The attorneys at the Law Offices of Warner Mendenhall have extensive experience with qui tam suits.
Whistleblowers
A “whistleblower” is an employee, former employee, or member of an organization who reports employer or organization misconduct to people or entities having the authority and willingness to take corrective action. The misconduct may relate to a violation of law or to a direct threat to the public interest, such as fraud, health violations, and corruption. Whistleblowers include government employees and contractors.
The False Claims Act contains an anti-retaliation provision for whistleblower protection. That provision provides relief to an employee who is discharged, demoted, harassed, or discriminated against because of his or her lawful acts in furtherance of an action under the act. Such relief may include:
- Reinstatement
- Double back pay
- Compensation for any special damages, including litigation costs and reasonable attorney fees.
