|
|
Whistleblower Qui Tam Actions
The False Claims Act provides private persons with a civil
cause of action against businesses that knowingly submit false claims
for payment to the federal government. Such a lawsuit, known as a “qui
tam” action, is typically brought by a current or former employee
of the business. The offending entity may be required to pay treble damages
plus penalties of $5,000-$10,000 per false claim. If the action is successful,
the plaintiff may be entitled to as much as 25%-30% of the proceeds of
the recovery or settlement, with the balance being paid over to the government.
Typical situations which may give rise to qui tam actions
include the submission of false claims by government contractors and fraudulent
billing by health care organizations to Medicare. In order to encourage
employee whistleblowers to come forward, the False Claims Act also provides
provisions protecting them from retaliatory action by an employer, including
provisions requiring wrongfully terminated or demoted employees to be
reinstated at the same level of seniority with back pay.
If you are aware of an individual or business that is
submitting false claims for payment to the federal government, please
contact our office so that we can advise you with regard to your legal
options.
|
|
