The False Claims Act, also known as the Lincoln Law, imposes liability on individuals or companies who defraud the U.S. government or one of its programs. This Act also includes a qui tam claims provision that allows individuals, known as relators or more commonly whistleblowers, to file actions on behalf of the government to expose the fraud. Whistleblowers are entitled to receive a portion of the funds recovered as damages.
Qui tam actions under the False Claims Act are complex and involve several legal intricacies. The following is a look at some facts that anyone considering whistleblowing should know concerning qui tam actions and the False Claims Act.
The False Claims Act Contains a First to File Rule
Under the False Claims Act, only the first plaintiff to file his or her case will be able to continue the action and recover damages. The first to file rule is broadly interpreted so that any actions that contain the same essential facts or allegations of fraud as set out in previously filed claims will be barred.
When you file your action, you will not know what similar cases have been filed because qui tam cases are initially kept under seal. The important thing to take away from this rule is that the early you can reasonably file your claim, the better your chances are of being able to proceed and potentially recover down the road.
False Claims Act Cases Cannot be Based on Information in the Public Domain
The qui tam provision within the False Claims Act is intended to encourage those with insider knowledge of the fraud occurring against the government to come forward. Therefore, cases cannot be based on information that is in the public domain unless the plaintiff was the original source of that information.
Qui Tam Cases are More Likely To Succeed When the Government Joins the Case
After a qui tam case is filed in court, a copy of the complaint and a disclosure statement with all the facts will be sent to the Department of Justice. The DOJ will conduct a lengthy investigation and decide whether it wants to intervene or join in on the case. If the government elects not to join in, the plaintiff can still continue with the action. The government could intervene at a later date.
While the case can succeed without the government’s action, having the government intervene can increase your chance of success. The government has tremendous resources, investigatory powers, and an ability to impose sanctions that can obtain the results you desire.
False Claims Cases Are Typically Under Seal for Some Time
Qui tam cases are initially filed in federal court under seal and are not served on the defendant. The purpose of this is to allow the government some time to investigate the claims without the government’s knowledge. Typically, the claim will remain under seal for 60 days but complex actions can be sealed for far longer.
Barrett Law PLLC: Mississippi Qui Tam Attorneys of Distinction
Bringing a qui tam action under the False Claims Act is complex and requires the assistance of an experienced whistleblower attorney. The seasoned Mississippi Qui Tam Lawyers at Barrett Law PLLC have over 75 years experience guiding whistleblowers through the filing of qui tam actions. We have the knowledge and skill to bring even the most complex of actions and will fight for the success of your action. At Barrett Law PLLC, we offer a free consultation to all new clients and operate on a contingency fee basis. For representation of unmatched excellence, call Barrett Law PLLC today at 1 (800) 707-9577 to schedule your free consultation.