The federal False Claims Act was created to encourage inside employees to report fraud. To incentivize employees to report an employer’s fraudulent activity, the False Claims Act has specific provisions to protect whistleblowers from workplace retaliation and allows whistleblowers to receive an award.
A whistleblower’s award, called the “relator’s share, can be up to 30% of any recovery, and up to 25% of any recovery when the government intervenes in the case.
Claims filed under the False Claims Act are called “quit tam” lawsuits. When a whistleblower files a qui tam lawsuit, the lawsuit is filed under seal (meaning in secret). The lawsuit remains under seal to allow the government time to investigate the claim and decide whether to intervene.
Before reporting the fraud, it is important to speak with an experienced whistleblower lawyer. The False Claim Act has specific rules and requirements, like the Original Source Rule, that must be followed or a whistleblower may be ineligible for an award.
If you are considering becoming a whistleblower, contact Miller Law Group for a free consultation, or call 919-348-4361.