What is the Federal False Claims Act?
The Federal False Claims Act (FCA) is the primary weapon in
combating fraud against the federal government. The FCA
covers fraudulent claims made against any federal agency, program,
contract, or grant. Many states have similar laws to protect
themselves against fraud. Under the FCA, whistleblowers are
permitted to bring a case on behalf of the federal government to
recover damages on its behalf.
How Are Whistleblowers Incentivized?
The FCA incentivizes "whistleblowers"
to report fraud by offering a percentage of any reward recovered
from an ensuing lawsuit, generally in the range of 15-25%.
Under the Federal False Claims Act, the reporting individual
is known as the "relator." The government has the option to
either step in and litigate, or decline the case. If the
government declines to proceed, the relator may continue on behalf
of the government. If the relator succeeds, they are entitled
to a larger percentage of the recovery (25-30%).
Why is a qui tam lawyer/attorney important in Federal False
Claims Act lawsuits?
The FCA is a very complex area of the law with a number of
unique provisions that an unexperienced attorney may overlook or
misinterpret. It is important to find a whistleblower qui tam law
firm with extensive knowledge and experience litigating FCA
cases. In order to report fraud against the government and
recover under the FCA, a whistleblower must file a lawsuit, rather
than call a hotline or follow some other reporting mechanism.
The lawsuit itself is complex, requiring specificity in
pleading the claims of fraud. Only the first relator to
report the fraud under the FCA is eligible for a reward. The
government declines to intervene in the vast majority of
cases. A qui tam lawyer can help the relator
file an action which will get the attention of the government and
maximize the chance of government intervention and success.
Finally, an FCA claim can take years to investigate and litigate,
making securing a qui tam attorney even more important.
Contact Us To Learn More
We invite you to learn more about our Whistleblowers, Qui Tam
& False Claims Act Practice Group. For more information or to
schedule a confidential discussion about a qui tam case, please
fill out the free case inquiry on the right. You can also call us
at (215) 875-4699.
For further reading:
Qui Tam and False Claims Act Blog
What is Qui Tam?
Our Law Firm's Approach to Qui Tam
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