Whistleblower Lawsuits In US Government Agency

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 US Government Agency, 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 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 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.

Filing a Whistleblower lawsuit in US Government Agency

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 US Government Agency.

The relator files the lawsuit in federal court in US Government Agency "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 investigation period, the Federal government then makes a decision as to whether to join, or intervene, in the qui tam lawsuit. If the government decides to join the case, all of the litigation is then conducted jointly by the government attorney along with the whistleblower’s attorney, but 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 US Government Agency 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 US Government Agency

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 US Government Agency. The amount varies, depending on whether the government intervened in the qui tam case and other factors.

In the past Congress has decided to give whistleblowers a sizeable portion of the monies recovered that result from a qui tam or whistleblower lawsuits conducted in all of the states including New York to give people a strong incentive to step forward and take the personal and professional risks involved in reporting fraud. Congress also wanted to try to encourage private law firms to risk their resources in litigating these type cases in the public’s behalf.

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