If you have become aware that your employer is engaged in conduct designed to defraud the federal government of public funds, you can protect the public by disclosing this improper conduct. Although there is a range of federal and state statutes that protect and compensate whistleblowers for the courageous act of coming forward, the False Claims Act constitutes one of the most powerful whistleblower protections. The importance of the False Claims Act is reflected by the fact that lawsuits filed under the statute have led to recovery of more than $40 billion between 1986 and 2013 with a significant portion resulting from the actions of whistleblowers. Our Mississippi qui tam lawyers recognize that employees considering blowing the whistle on an employer have concerns, so this two-part blog provides answers to some commonly asked questions.
What is a qui tam claim under the False Claims Act?
The term qui tam refers to a legal action under the False Claims Act (31 U.S.C. Sections 3729 through 3733) that empowers individuals and entities to sue wrongdoers engaged in fraud against the federal government. The whistleblower who commences the action brings the lawsuit on behalf of the U.S. government. The party that brings the action has the right to receive substantial rewards based on the degree of assistance provided to the government and the monetary amount recovered. A number of states have passed similar laws that protect the public coffers of state governments.
Where is a False Claims Act filed?
The party who brings a qui tam action under the False Claims Act files the action confidentially under seal in federal district court. Along with filing the lawsuit, the complaint and a disclosure statement regarding the material information and relevant evidence must be served on the U.S. Attorney for the district and the U.S. Attorney General. Unlike other lawsuits, the defendant is not served with the complaint, and the substance of the allegations and supporting evidence must remain confidential while the action remains under seal.
What protections does the False Claims Act include for employees?
The most common scenario involves private individuals bringing qua tam actions that disclose fraudulent conduct by their employer. The statute is constructed to protect employees who disclose this information to protect the public. An employee subjected to discrimination, harassment, termination, or demotion as a result of lawfully preceding under the statute might be entitled to a range of remedies that include:
- Double back pay
- Reinstatement
- Compensation for any special damages (e.g. reasonable attorney fees and costs of litigation)
Whistleblowers also should be aware that they might be able to seek additional protections from state laws pertaining to wrongful termination or related employment laws.
How are penalties assessed under the False Claims Act?
A defendant found to have committed acts of fraud will be subject to civil fines of $5,000 to $10,000 for each violation, as well as treble damages based on the amount the government was defrauded.
Our Mississippi False Claims Act Lawyers work diligently to help our clients maximize the amount of the reward that they are entitled to pursuant to their qui tam claim. We invite you to read the second installment of this two-part blog post. At Barrett Law, we are here to help. Contact our firm today at 662-834-2488 to schedule your free consultation, so we can answer any questions you may have regarding filing your claim.
