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How the Environmental Law Works
The False Claims Act allows people to file “qui tam” or more commonly known as whistleblower lawsuits against individuals or companies that have directly or indirectly defrauded the federal government. Through qui tam or whistleblower lawsuits filed over environmental concerns, whistleblowers may recover the government’s losses on the government’s behalf. Tax fraud cases are handled differently. For more information about rewards for whistleblowers in New York cases involving federal tax fraud or cases involving tax evasion or underpayments, you should see the information about the new IRS whistleblower law .
Many people who file qui tam or environmental whistleblower lawsuits (called the “relators”) are employees or former employees of companies that commit environmental abuse. But anyone who knows of an instance where the government has paid false claims can file a qui tam lawsuit. That could be, for example, a competitor, a customer, a subcontractor or even a patient.
Environmental cases and procedures are unique.
A specialized knowledge of the law can be very helpful in getting a successful outcome for an environmental qui tam lawsuit.
The relator files the lawsuit in federal court in Administration "under seal,” meaning it is not available to the public and cannot be discussed with anyone except the government officials investigating the case. Even the defendants -- the individual or organization charged with committing fraud -- are not told about the lawsuit. This gives the government time to investigate the fraud allegations without alerting the defendant. The seal initially lasts for 60 days. But seals on qui tam or whistleblower lawsuit cases can be routinely extended for one or two years or even longer 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 timing of a lawsuit in Administration can be critical. The first person to file a case under the False Claims Act for a particular fraud preempts all other cases. So if you plan to bring a case, it is important to do so before another whistleblower beats you to the courthouse. Potential whistleblowers also should keep in mind that the False Claims Act has a statute of limitations that may be as short as six years.
Whistleblower’s rewards in Administration
Under the False Claims Act, whistleblowers are entitled to 15 percent to 30 percent of whatever amount the government recovers as a result of their qui tam or whistleblower lawsuits filed in Administration. The amount varies, depending on whether the government intervened in the qui tam case and other factors.
Congress decided to give whistleblowers a share of the recoveries that result from qui tam or whistleblower lawsuits iin all states including New York to give people a strong incentive to step forward and take the personal and professional risks involved in reporting fraud. It also wanted to encourage private law firms to risk their resources in litigating cases on the public’s behalf.
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