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Whistleblower Qui Tam Lawsuits and the False Claims Act

The Federal Government will pay you for uncovering and reporting fraud.

What is a Qui Tam or Whistleblower Lawsuit?

Anyone who exposes fraud committed against the U.S. government can file a lawsuit on the government’s behalf.  This is called a “Qui Tam” lawsuit. That person, also known as a whistleblower, is entitled to receive up to 30 percent of the amount recovered by the government if the case is successful.

In 2021, the government recovered $5.6 billion in settlement judgments under the False Claims Act.  Whistleblowers with insider knowledge of fraudulent activity filed 598 qui tam lawsuits on behalf of the government in 2021.

How does the False Claims Act work?

The False Claims Act (FCA) is a federal civil law that holds individuals and companies accountable for stealing, defrauding, and cheating government programs.  Most lawsuits filed under this act involve health care, the military, and government agencies that award contracts.

For example, if you work for Acme Inc. and can show that the company is stealing, cheating, or somehow taking money from the US government through fraud, you can file a qui tam or whistleblower lawsuit. Your lawsuit is on behalf of the US government. If the lawsuit is successful, you may be able to keep up to 30% of whatever the government gets back from Acme Inc.

The law helps recover billions of dollars in government funds and rewards those willing to speak out to protect the government and taxpayers. By exposing unlawful activity, whistleblowers help prevent taxpayer money from being stolen or wasted.

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What Types of Fraud do Whistleblowers Report Most?

How much money can a whistleblower get in compensation?

Whistleblowers in successful qui tam cases can win substantial amounts of money.  Companies found liable can be fined up to three times the amount lost by the government plus penalties on each claim. The whistleblower is entitled to get a percentage of what’s recovered.

If the government gets involved with the qui tam case, then the whistleblower, also known as the relator, is eligible to receive 15 to 25 percent of that money.

Whistleblowers file qui tam lawsuits so they can be protected from retaliation by the company where they work. A qui tam lawsuit is “under seal,” or secret, for at least 60 days while the government investigates the potential fraud. That means the company will not know who reported them during that time.

There’s also protection for whistleblowers after they’re identified. The False Claims Act says that if an employee is fired, harassed, or discriminated against, he or she may be eligible to get their job back with back pay and compensation for legal fees.

What type of evidence do I need for a whistleblower or qui tam case?

Extensive evidence helps make a qui tam case stronger. Whistleblowers should document all meetings, conversations, emails, receipts, and other paperwork that could help prove fraudulent activity. They should not steal documents or get them illegally.

It’s important to create a record of how all documents were obtained. No detail is too small, including the date, time, and place the conversations about fraud took place. Whistleblowers have a strong case when they can show their information comes from direct contact with the people committing fraud. The attorneys at mctlaw can help you gather the evidence you need to build a strong case.

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My experience with mctlaw for my hip claim was remarkable, I found the communication to be outstanding. I also felt they did an excellent job setting expectations and then delivering on those stated expectations. From net amount, timing of the settlement, how much each related party would receive etc. they were outstanding. I would highly recommend them. They are very professional and set the bar in vaccine injury practice.

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John and Marie (Last Name Withheld for Privacy)

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Thanks to you I am living comfortably in my own home with assistance. After my devastating GBS diagnosis from the flu vaccine six years ago, I didn’t know what to do. Thank goodness I found you and your law firm. Thank you so much!

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Alison is a phenomenal attorney… When she put together the demand letter she was able to explain what I had been through and how I had felt… I want to thank your firm but personally thank all that had a hand in resolving my case.

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The past 10 months have been a whirlwind to say the least but we are truly thankful, grateful and appreciative of …all you have done for our family. This is truly life changing for us. The weight that this lifts off of our shoulders and the peace of mind it will give us….its priceless. So again, thank you.

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Martin (Last Name Withheld)

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I just wanted to thank you for your help over the past 3 years…Thank you for negotiating with the DOJ in order to get as much as we could under the circumstance…It has been a pleasure having you and your wonderful staff here to assist me in this long and tedious effort.

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Thank you for all of your efforts all along to help resolve lifelong issues I will always have due to this defective implant. You have held my hand through a lot and each and everyone of you at MCT are appreciated for all of your efforts.

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Mr. Maglio, I want you to know the appreciation I have for Diana Stadelnikas and her team for the effort they have put into my wife’s claim! The settlement negotiation they achieved (in a very frustrating situation) is outstanding! While there’s a way to go yet, I want to assure you will they have my full confidence and gratitude to the finish! I know you must be proud of your people!

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