Research

The billions of state and federal government dollars doled out for healthcare, defense and education research each year are expected to be used for a specific reason and in a particular way. When those research funds are misappropriated or are deceptively requested or received, a company is in violation of the False Claims Act, committing fraud that may only be recovered in a Whistleblower Lawsuit.

The False Claims Act

Originally known as the Lincoln Law but better known today as the Whistleblower Law, the False Claims Act was designed to encourage and empower U.S. citizens to fight fraud against their government. The law has gone through several changes since its enactment during the Civil War; however, it remains a powerful incentive for the public to be involved in government protection. Since 1986, the False Claims Act has aided the government recovery of more than $14 billion and has rewarded vigilant whistleblowers with more than $2.2 billion.

Whistleblowers

Named for English bobbies or policemen who blow whistles to warn the public of the first signs of crime, whistleblowers are individuals, usually employees of a government-funded organization, who witness or know about fraudulent workplace activity. Whistleblowers may first report company wrongdoing internally and confidentially, but they often look outside the organization for sources, like attorneys or the media, who can help them do something about the violations they've witnessed.

Whistleblower lawsuits are filed when a company threatens to retaliate against an employee for revelations of its misconduct. The Whistleblower Law then intervenes and protects both the government and the whistleblower by shielding the employee from company mistreatment in the forms of demotion, pay cuts, transfer or firing. Under Sarbannes-Oxley, it is a felony for a company under investigation to take retributory action against an employee who has reported company fraud.

Whistleblower Qui Tam Lawsuits

When a whistleblower files suit as an individual, he is then known as the relator under the False Claims Act. The lawsuit is called a qui tam lawsuit. Qui tam is a shortened form of a Latin phrase that means "he who sues for the king as well as himself". A qui tam lawsuit is, therefore, a civil suit presented to the government, that is filed by an individual on the government's behalf.

A successful qui tam lawsuit helps to get back the government funds lost to research fraud, a part of which are shared with the whistleblower. Companies convicted of violations of the False Claims Act may be ordered to pay triple the amount of the original fraud, plus additional monies for each false claim. In return for his good citizenship, a whistleblower may be awarded between 15 and 30 percent of the the government's recovered funds.

Government Gratitude

The motives behind a whistleblower lawsuit are usually a grave concern for the way government research funds, within an offending organization, are being handled. Standing up to a company's fraud has implications beyond the whistleblower himself. A whistleblower lawsuit that succeeds benefits the government and taxpayers as well.