Advice for Whistleblowers
How it Works
- If you are thinking of reporting fraud, it’s important
for whistleblowers to step forward as quickly as possible. The
first person to file a case under the False Claims Act for a particular
fraud preempts all other cases. If the fraud is widespread, there
is a good chance that other employees are witnessing it too. In
addition, if information about the fraud becomes public before
the case is filed, the case can be dismissed. It is also important
to choose a law firm that is experienced in whistleblower (qui
tam) lawsuits.
- The relator (whistleblower) files the lawsuit in federal court
"under seal.” This means the case is not available
to the public and cannot be discussed with anyone except the government
officials investigating the case. The seal initially lasts for
60 days but are often extended for one or two years while the
government investigates.
- At the end of the sealed investigative period, the government
decides whether to join, or intervene, in the qui tam lawsuit.
If the government joins the case, the litigation is conducted
jointly by the government and the whistleblower’s attorney,
with the government as lead counsel. If the government declines
to intervene, the relator may go forward with the lawsuit and
assumes primary responsibility for running the case.
- The law stipulates that a liable defendant pay three times the government’s losses plus a fine for each false claim. When settling a case, the government often agrees to forego the civil penalties and accepts two to three times the amount of damages suffered by the government. The defendant also must pay the fees and the case-related expenses of the whistleblower’s attorney.
Fees for Whistleblowers
The amount that the relator (whistleblower) can receive ranges from 15% to 30%, depending on whether the government intervenes in the case and the extent to which the relator substantially contributed to the prosecution of the action.
- If the government intervenes in the action, a successful relator
will receive between 15% and 25% of the amount recovered by the
government. The exact percentage is usually negotiated with the
government at the conclusion of a successful case and will depend
on the relator’s substantial contribution to the litigation.
- If the government does not intervene in the case and the relator
continues the action to a successful outcome, the relator will
be entitled to between 25% and 30% of the amount recovered for
the government.
- There are circumstances in which a relator may be entitled to
receive less than 15% of the amount recovered by the government.
If the relator’s suit is one that is found to be “based
primarily on disclosures of specific information” relating
to allegations or transactions from public sources (other lawsuits,
government hearings or investigations, or news reports), the relator
may be entitled to no more than 10% of the proceeds of the case.
Legal Help & Free Case Evaluation
If you are thinking of coming forward and blowing the whistle on your employer or another company, please fill out the form on our Free Consultation page today! Our lawyers will evaluate your case confidentially and at no cost.
The information you submit will be kept EXTREMELY CONFIDENTIAL. We will not share your information with anyone.
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