The False Claims Act allows lawsuits known as "Qui Tam" suits against corporations and individuals that have defrauded the Federal government. The lawsuit allows the whistleblower to recover government losses. The matter is filed under seal, which means that it is not publicly disclosed. During this time period, the government investigates the fraud allegations. The seal is in place for 60 days, but may be extended longer while the government is conducting its investigation. Upon conclusion of the investigation, the government will decide whether to intervene or become a party to the lawsuit. Should the government become a party, the litigation is handled jointly by the whistleblower's attorney and the government. Should the government decline to intervene, the whistleblower may proceed without government intervention.
The whistleblower must be the first to raise allegations in order to collect a reward. Under the FCA, whistleblowers may be entitled from 15 to 30% of the government's recovery. Under statutory provisions, the defendant of the whistleblower's claim may also be responsible for the whistleblower's attorney fees and case related expenses.
Examples of fraud that can be brought under a Qui Tam suit include, Healthcare Fraud, Fraud to the Government, Financial Industry Fraud and Defense Contractor Fraud.
Contact Hilder & Associates, P.C. to learn how we may assist in developing your False Claims Act case.
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