The False Claims Act (FCA) is a federal law that encourages whistleblowers with inside information about fraud schemes perpetrated against the government to come forward. This law allows whistleblowers to step into the shoes of the government and file lawsuits against their employers or others that have engaged in massive fraud schemes. As an incentive for whistleblowers, the FCA provides rewards to whistleblowers when the government recovers money based on the information they have provided, and these rewards can be significant.
Filing a claim against your employer under the FCA carries significant risks. Many potential plaintiffs are concerned about retaliation at their jobs for coming forward. Because of this, the False Claims Act includes provisions to protect whistleblowers against retaliation. The anti-retaliation provisions of the FCA are designed to strengthen the law and convince would-be whistleblowers to come forward when they have an understandable fear of being fired or retaliated against by their employers. Here’s what to know about the FCA and how it works for whistleblowers from the experienced qui tam lawyers at Swartz Swidler.
Understanding the False Claims Act and How It Works for Whistleblowers
The False Claims Act allows whistleblowers to file lawsuits against entities that are engaged in fraudulent schemes against the government on the government’s behalf. These lawsuits are filed under seal and served to the U.S. Attorney’s Office and the U.S. Department of Justice, but they aren’t served on the defendant. Once the suit has been filed, the government will conduct an investigation. Following the investigation, the government might either decide to intervene in the case or decline intervention. If it declines to intervene, the whistleblower can then proceed in the case and litigate it in the courts. However, it is typically best if the government elects to intervene since the government has significant resources to prosecute cases.
If a qui tam lawsuit is successful, the whistleblower will receive a reward of 15% up to 30% of the amount the government recovers. When an entity defrauds the government, it will be liable to pay triple the total reimbursements the entity secured through fraud plus a penalty for each claim that was falsely filed.
Whistleblowers are protected against retaliation by their employers for filing a qui tam lawsuit. This means that the employer can’t fire, suspend, demote, threaten, discriminate against, or harass an employee based on the qui tam action the employee filed. Additionally, everyone who participates in the investigation and provides assistance during the government’s investigation is also protected against retaliation.
Examples of Violations
The following are examples of conduct that violates the False Claims Act and can form the basis of a qui tam action:
- Submitting a false claim for payment of services not provided in federal False Claims Act healthcare actions
- Upcoding
- Failing to return an overpayment
- Kickbacks
- Self-dealing
- Providing unnecessary treatments
- Other fraud schemes
- Making false statements during a government audit to reduce how much money the company would owe
Filing a Qui Tam Complaint
False Claims Act lawsuits are called qui tam actions. Once you file a complaint, you will have to serve a copy of it on the U.S. Attorney’s Office in your state and the U.S. Department of Justice. After it is received, the government will investigate what you reported. Your complaint will be filed under seal, which means your employer will not know that you have filed it. If you violate the sealing order, the court will dismiss your case.
When you file a complaint, you will also need to include a written disclosure of all of the evidence to support your claim. However, your employer will likely learn that a complaint has been filed at some point during the government’s investigation and might be able to deduce that you filed it. In many cases, the government will attempt to settle with the defendant through mediation. If that is successful, your case will be over.
Following the investigation, the government will decide whether or not to intervene in your case. If it does, it will take over all of the litigation and will pursue the case in court. You will remain a party to the case, but you will not have any responsibilities for prosecuting the case against your employer. If the government decides not to intervene in your case, you will have the option of pursuing the case in court with an attorney. At the time the government makes its decision on whether to intervene, the case will be unsealed and be made public.
Whistleblower False Claims Act Protections
The False Claims Act includes provisions to protect whistleblowers against retaliation. If your employer learns that you filed a qui tam complaint and retaliates against you, you can file a retaliation lawsuit against your employer. A retaliation lawsuit might allow you to recover the following damages:
- Two times your back pay
- Reinstatement or front pay
- Special damages
- Litigation costs
- Attorney’s fees
Talk to the False Claims Lawyers at Swartz Swidler
If you have non-public information about your employer’s extensive fraud scheme against the government, you might have grounds to pursue a qui tam lawsuit and should consult an experienced attorney at Swartz Swidler. Our attorneys have extensive experience helping whistleblowers file and prosecute qui tam lawsuits and can provide an honest assessment of your potential claim. To learn more, contact us for a confidential consultation by calling (856) 685-7420.
