The Effect of Government Intervention on a Whistleblower Award
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The False Claims Act was designed to provide an award to encourage potential whistleblowers to come forward and take steps to stop the waste of taxpayer dollars.
Designed to encourage potential whistleblowers to come forward and take steps to stop the waste of taxpayer dollars, the False Claims Act provides for an award to a successful whistleblower. When the False Claims Act was first enacted, it allowed a whistleblower – or relator – to pocket 50 percent of the proceeds of the suit, including damages and penalties.
That was 1863. Nowadays, a successful whistleblower can expect to walk away from a False Claims Act lawsuit with 15 to 30 percent of the amount recovered by the government in his or her case. Where the particular amount of an award will fall on this spectrum is within the discretion of the judge and should be based on the extent to which the information he or she provided formed the basis of the qui tam lawsuit and recovery.
Whistleblower Awards When The Government Intervenes
The False Claims Act specifically limits a whistleblower’s recovery to 15 to 25 percent of the proceeds recovered in a qui tam lawsuit in which the government intervenes. According to the Department of Justice, the government intervenes in approximately 25 percent of qui tam lawsuits.
Whistleblower Awards When The Government Declines To Intervene
If a whistleblower and his or her attorney choose to pursue a qui tam lawsuit after the government declines to intervene, the potential award to the whistleblower increases to 30 percent. At a minimum, a successful whistleblower will be awarded 25 percent of the proceeds of the suit, whether obtained through settlement or litigation.
Exceptions To Whistleblower Award Rules
The False Claims Act also allows a judge to award a whistleblower an amount less than what is provided for by statute. If the judge believes that the information provided by the relator played only a minimal role in stopping the alleged fraud or false claims, he or she may be awarded less than 15 percent of the proceeds of the suit. If the government intervenes in a successful qui tam lawsuit and the information provided by the whistleblower was publicly available, he or she may be awarded less than the 15 percent minimum.
If the individual bringing the whistleblower lawsuit played a role in the fraud or the filing of false claims, his or her award for participating in ending the fraud may be reduced. If a whistleblower has been convicted of a crime based on the same facts that have given rise to the whistleblower suit, he or she may be dismissed from the case entirely.
In any whistleblower case, an experienced False Claims Act attorney can work to preserve the right to an award that fully and fairly compensates the whistleblower for the risk he or she took in bringing evidence of fraud and waste of U.S. taxpayer dollars to light. In addition, if a whistleblower is unfairly denied an award or does not receive the compensation he or she is due after a False Claims Act case is settled or litigated, a whistleblower protection lawyer can help pursue the money that is owed to a whistleblower.
ABOUT THE AUTHOR: THe Whistleblower Law Firm
Our experienced trial lawyers handle claims all over the United States. While many of us call Florida home, our relationships with lawyers and law firms in other states, as well as our experience working with federal agencies such as the Department of Justice and the U.S. Attorney's Office, only add to our ability to provide outstanding service to our clients in nationwide whistleblower cases.
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More information about The Whistleblower Law Firm
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
That was 1863. Nowadays, a successful whistleblower can expect to walk away from a False Claims Act lawsuit with 15 to 30 percent of the amount recovered by the government in his or her case. Where the particular amount of an award will fall on this spectrum is within the discretion of the judge and should be based on the extent to which the information he or she provided formed the basis of the qui tam lawsuit and recovery.
Whistleblower Awards When The Government Intervenes
The False Claims Act specifically limits a whistleblower’s recovery to 15 to 25 percent of the proceeds recovered in a qui tam lawsuit in which the government intervenes. According to the Department of Justice, the government intervenes in approximately 25 percent of qui tam lawsuits.
Whistleblower Awards When The Government Declines To Intervene
If a whistleblower and his or her attorney choose to pursue a qui tam lawsuit after the government declines to intervene, the potential award to the whistleblower increases to 30 percent. At a minimum, a successful whistleblower will be awarded 25 percent of the proceeds of the suit, whether obtained through settlement or litigation.
Exceptions To Whistleblower Award Rules
The False Claims Act also allows a judge to award a whistleblower an amount less than what is provided for by statute. If the judge believes that the information provided by the relator played only a minimal role in stopping the alleged fraud or false claims, he or she may be awarded less than 15 percent of the proceeds of the suit. If the government intervenes in a successful qui tam lawsuit and the information provided by the whistleblower was publicly available, he or she may be awarded less than the 15 percent minimum.
If the individual bringing the whistleblower lawsuit played a role in the fraud or the filing of false claims, his or her award for participating in ending the fraud may be reduced. If a whistleblower has been convicted of a crime based on the same facts that have given rise to the whistleblower suit, he or she may be dismissed from the case entirely.
In any whistleblower case, an experienced False Claims Act attorney can work to preserve the right to an award that fully and fairly compensates the whistleblower for the risk he or she took in bringing evidence of fraud and waste of U.S. taxpayer dollars to light. In addition, if a whistleblower is unfairly denied an award or does not receive the compensation he or she is due after a False Claims Act case is settled or litigated, a whistleblower protection lawyer can help pursue the money that is owed to a whistleblower.
ABOUT THE AUTHOR: THe Whistleblower Law Firm
Our experienced trial lawyers handle claims all over the United States. While many of us call Florida home, our relationships with lawyers and law firms in other states, as well as our experience working with federal agencies such as the Department of Justice and the U.S. Attorney's Office, only add to our ability to provide outstanding service to our clients in nationwide whistleblower cases.
Copyright The Whistleblower Law Firm
More information about The Whistleblower Law Firm
View all articles published by The Whistleblower Law Firm
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
