WHISTLE BLOWER LAWSUITS 

A whistleblower is a person who comes forward to allege an individual, business or organization has defrauded a state or federal government. For example, a person who is not affiliated with a governmental entity can file an action against a federal contractor, claiming fraud against the government. Whistleblowers are typically employees—or former employees—who disclose information either internally (such as to a manager) or externally (to a lawmaker, regulator, the media or a watchdog organization). 

Whistleblowers may be exposing gross waste of funds, gross mismanagement, violations of laws, rules or regulations, abuse of authority or a specific, substantial danger to public safety and/or health. The whistleblower typically becomes aware of the information while on the job, and the concerns of the whistleblower must be serious enough to warrant necessary changes to protect the public interests.

Unfortunately, high-profile whistleblowers such as Edward Snowden have given the term a negative connotation, even though whistleblowers are reporting illegal or unethical behaviors. It is true that a public declaration of wrongdoing from a whistleblower could potentially damage revenues, personal reputations and share or stock prices, as well as attracting attention from industry regulators, governmental agencies and law enforcement. 

The reality, however, is that most whistleblowers put their own lives and futures at risk in order to do the right thing by speaking up. Many whistleblowers attempt to raise their concerns through internal channels first, however when there is no change, they may be forced to go outside the company. In the United States, whistleblowers are afforded certain rights, including protection from retaliation.

The False Claims Act and Qui Tam Lawsuits

The False Claims Act is widely regarded as the most effective tool in combating fraud against the federal government. The False Claims Act was put into place during the Civil War as a method of combating fraud perpetrated against the government by Union Army suppliers and was sometimes referred to as “Lincoln’s Law.” In 1986, the False Claims Act was substantially revamped in response to highly publicized accounts of defense contractor abuse. Financial incentives for whistleblowers were increased, and certain barriers experienced by whistleblowers were reduced. 

According to the Department of Justice, between 1986 and 2018, the federal government recovered more than $59 billion as a result of cases filed under the False Claims Act, with more than half of those settlements coming from healthcare-related cases. The qui tam provisions set forth under the False Claims Act permit any person or entity to file a False Claims Act case on behalf of the federal government under the theory that the government lacks the information and resources to fully pursue all false and fraudulent actions.

What Makes a Good Whistleblower Case? 

Whistleblowers whose False Claims Act lawsuits recover government funds are rewarded with money and job protection due to the professional and personal risks taken in filing such a lawsuit. Because of these risks, it is important to know whether your whistleblower case is solid. Although it is important that you speak to a knowledgeable whistleblower lawyer regarding your potential lawsuit, in general a “good” whistleblower case meets the following criteria:

• You have first-hand, personal knowledge of the wrongdoing;
• The illegal activities you are alleging are backed up with documents confirming those activities;
• The money at stake is significant, and
• Your qui tam claim falls within the statutes of limitations.

The qui tam provisions under the whistleblower system can be complex, and difficult to navigate, making it all the more important that you have an experienced attorney by your side.