The False Claims Act contains a provision authorizing whistleblowers, or qui tam “relators,” to bring suits on behalf of the United States against the false claimant and obtain a portion of the recovery, otherwise known as a relator share. The phrase “qui tam ” is short for qui tam pro domino rege quam pro se ipso in hac parte sequitur, meaning “who [qui ] sues in this matter for the king as well as [tam ] for himself.” U.S. ex rel. Bogina v. Medline Indus., Inc., 809 F.3d 365, 368 (7th Cir. 2016).
The False Claims Act penalizes those who submit or cause to be submitted false or fraudulent claims to the government for payment. It also penalizes those who make or use false statements to get a false or fraudulent claim paid.
False Claims Act relators are eligible to receive 10% to 30% of the recovery. In an intervened case, the relator can obtain 15% to 25% of the recovery, depending upon the extent to which the person substantially contributed to the prosecution of the action.
In a non-intervened case, the relator can obtain between 25% to 30% of the recovery. Additionally, a relator who prevails in an FCA action—regardless of whether the government intervenes—is entitled to “reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorneys’ fees and costs.” 31 U.S.C. § 3730(d). And a qui tam whistleblower can obtain damages under the False Claims Act anti-retaliation provision.
Qui tam whistleblower lawsuits have enabled the government to recover more than $40 billion.
Washington DC False Claims Act Whistleblower Lawyers
If you are seeking representation in a False Claims Act qui tam action, call our whistleblower lawyers today at 202-262-8959. We also represent whistleblowers in False Claims Act retaliation and NDAA retaliation actions.
Examples of False Claims Act Violations
Examples of the type of fraud that can qualify for a qui tam whistleblower award or bounty include:
- Paying kickbacks to refer patients for services that will be reimbursed by Medicare;
- Fraudulently inducing a contract, i.e., making false representations to induce the government to enter into a contract;
- Bid rigging;
- Violating good manufacturing practices;
- Double-billing Medicare;
- Defective pricing, including noncompliance with the requirement to submit current, accurate and complete certified cost and pricing data under the Truth in Negotiations Act;
- Inaccurate disclosure of pricing information and practices, such as Hewlett-Packard’s $55 million settlement for providing incomplete commercial sales practices information to GSA contracting officers during contract negotiations and Informatica LLC’s $21.57 million settlement to resolve allegations that it provided false information concerning its commercial discounting practices for its products and services to resellers, who then used that false information in negotiations with GSA for government-wide contracts.
- Billing Medicaid for unnecessary medical services;
- Overbilling for services performed, such as Northrop Grumman’s $27.45 million settlement for overstating the number of labor hours its employees worked on two Air Force contracts by individuals stationed in the Middle East.
- Providing defective products, such as Sapa Profiles Inc.’s $34.6 million settlement to resolve claims that it falsified thousands of certifications after altering the results of tensile tests designed to ensure the consistency and reliability of aluminum.
- Falsifying admission criteria and regularly diagnosing patients with “disuse myopathy,” an invented medical term meaning generalized weakness, in order to qualify for higher levels of reimbursement as an Independent Rehabilitation Facility (IRF). Encompass Health paid $48 million to resolve allegations that some of its IRFs provided inaccurate information to Medicare to maintain their status as an IRF and to earn a higher rate of reimbursement and that some admissions to its IRFs were not medically necessary;
- Creating a fraudulent joint venture to secure government contracts that are set aside for businesses that participate in the Service-Disabled Veteran-Owned Small Business program. In 2019, A&D General Contracting agreed to pay approximately $3.2 million for fraudulently obtaining over $11 million in government contracts which had been set aside for service-disabled veteran-owned small businesses.
- Violating the federal Anti-Kickback Statute and the FCA by billing millions of dollars for unlawfully forcing patients to endure 72-hour hospital stays for observation and mental illness treatment against their will. Pacific Health Corp. paid $16.5 million to settle claims that it doled out kickbacks for referrals of homeless patients and provided them with unnecessary treatments.
- Making improper payments to doctors to get them to write prescriptions for two Teva products. In 2020, Teva agreed to pay $54M to settle a qui tam case alleging that it paid doctors speaker fees and pricey to prescribe multiple sclerosis drug Copaxone and Parkinson’s disease drug Azilect.
- Paying doctors and kickbacks or financial incentives to get patient referrals. In 2020, Agnesian HealthCare paid $10M to settle a qui tam case alleging that its compensation plan for doctors violated the Stark Law, the Anti-Kickback Statute, the federal False Claims Act and the Wisconsin False Claims by rewarding and offering incentives to its network of affiliated doctors to refer Medicare and Medicaid patients exclusively to Agnesian doctors and facilities.
- Upcoding in the form of billing for 14,000-level tissue transfers, which should have been billed as lower-level wound repairs.
- Making misrepresentations regarding certified cost or pricing data in violation of federal procurement laws and regulations. See 10 U.S.C. 2306a; 41 U.S.C. Chapter 35; FAR 15.403-4 and 15.403-5.
Frequently Asked Questions About False Claims Act Qui Tam Whistleblower Law
A qui tam whistleblower can be eligible for a large recovery. But there are many pitfalls and obstacles to proving liability, and there are unique rules and procedures that govern qui tam whistleblower cases. Therefore, it is critical to retain an experienced False Claims Act whistleblower lawyer to maximize your recovery. This FAQ provides an overview of some of the key aspects of False Claims Act claims.
- What is a qui tam whistleblower lawsuit?
- What types of false claims are prohibited by the False Claims Act?
- What is the first-to-file bar in False Claims Act qui tam cases?
- What is the requirement to file a False Claims Act qui tam action under seal?
- Are False Claims Act whistleblowers protected against retaliation?
- What is a reverse false claim?
- What is the statute of limitations for a False Claims Act qui tam action?
- What is the public disclosure bar in the False Claims Act?
- What is the original source exception to the public disclosure bar?
- What is materiality under the False Claims Act?
- What is “Scienter” Under the False Claims Act?
- Is a Violation of the Anti-Kickback Law Also a Violation of the False Claims Act?
- Does the False Claims Act Prohibit Bid-Rigging?
- Does the False Claims Act Prohibit Fraudulent Inducement of a Contract?
- Can a violation of Good Manufacturing Practices give rise to False Claims Act Liability?
- Is there a heightened pleading requirement for False Claims Act qui tam cases?
- Does the False Claims Act authorize treble damages?
- Must a False Claims Act qui tam relator have firsthand knowledge of all aspects of the fraud?
Whistleblower Retaliation Laws Protecting Employees of Federal Contractors and Grantees
Courageous whistleblowers that come forward to report fraud deserve robust protection against retaliation. Below is a list of common questions about key aspects of the anti-retaliation provisions of the False Claims Act and the Defense Contractor Whistleblower Protection Act.
- How does the NDAA whistleblower retaliation law protect whistleblowers at federal contractors and grantees?
- Must a NDAA Whistleblower Retaliation Plaintiff Prove a Subjective Belief of a Violation?
- What whistleblowing is protected under the False Claims Act anti-retaliation provision?
- Does the False Claims Act protect whistleblowers against retaliation?
- Is whistleblowing in the course of performing job duties protected under the False Claims Act?
- Is False Claims Act Whistleblower Protection Limited to Disclosures About the Whistleblower’s Employer?
- Does the participation of a supervisor with knowledge of protected whistleblowing in the decision to take an adverse personnel action prove knowledge under the False Claims Act whistleblower protection provision?
- Can a False Claims Act whistleblower retaliation plaintiff obtain double back pay (two times lost wages and benefits)?
- Are employees whose jobs require investigating fraud against the government required to meet a higher pleading standard?
- Are “duty speech” disclosures protected under the False Claims Act?
- What protections are available to federal contractor whistleblowers under the NDAA whistleblower protection law?
- Can False Claims Act whistleblowers use confidential documents to report fraud to the government?
- What is the purpose of the False Claims Act whistleblower protection provision?
- Does the False Claims Act protect a whistleblower who refuses to violate the Act?
