Whistleblower Lawsuits In Southern
How the 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 in Southern, whistleblowers may recover the
government’s losses on the government’s behalf. tax fraud cases are often
handled much differently
. For more information about rewards for Qui Tam whistleblowers
in New
York cases
involving federal tax fraud or tax underpayments, see information about the new IRS
whistleblower law .
Many people who file qui tam or whistleblower lawsuits in New
York (called the “relators”)
are employees or former employees of companies that commit fraud. But anyone who
knows of a particular 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.
False Claims Act cases and procedures are unique, and a specialized knowledge of the law can be very helpful in getting a successful outcome for a qui tam lawsuit in Southern.
The relator files the lawsuit in federal court in Southern "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, company or organization charged with committing the fraud -- are not told about
the lawsuit. This gives the government time to investigate the fraud allegations
without alerting the defendant. In most cases this seal usually lasts for 60
days.
But these seals on Qui-Tam or whistleblower lawsuits often can be routinely
extended for one or two years or even longer under circumstances while the
government continues to investigate.
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 decides not to intervene, then the relator may go forward with the lawsuit and assumes primary responsibility for running the case.
The timing of a lawsuit in Southern 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 bear in mind that the False Claims or Qui Tam Act has a defined statute of limitations that can be as short as six years.
Whistleblower’s rewards in Southern
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 Southern. 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.