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One of the first questions individuals have when considering filing a whistleblower lawsuit under the False Claims Act is, "Can I receive a financial award for reporting fraud?" In other words, "Do whistleblowers get paid?" The answer is a resounding yes. The False Claims Act (FCA) provides a mechanism for whistleblowers, also known as relators, to be financially rewarded for exposing fraud against the government. These whistleblower settlements can be substantial, offering a percentage of the government's recovery based on the extent and impact of the fraud.
Whistleblower Compensation Under the False Claims Act: A Breakdown
The False Claims Act gives people like you the power to come forward and report it. If successful, whistleblowers are entitled to a portion of the funds recovered by the government. Defendants found liable for defrauding the government face significant penalties, including treble damages (three times the actual damages) and penalties ranging from $11,803 to $23,607 per false claim (as of June 2021).
Successful whistleblowers generally receive between 15% and 30% of the total amount the government recovers. The specific percentage hinges on whether the government intervenes in the case:
- If the government joins the lawsuit, the whistleblower’s share is generally between 15% and 25%.
- If the whistleblower proceeds with the case independently after the government declines to intervene, their share can range from 25% to 30%. [1]
What Factors Influence Whistleblower Compensation?
The exact amount of whistleblower compensation can vary significantly. Key factors influencing the final reward include:
- Quality of Information: The more accurate, reliable, and original your information, the better. If the information has already been disclosed, the reward may be reduced. [2]
- Legal Representation: Experienced Qui Tam lawyers or False Claims Act lawyers can significantly strengthen your case and potentially increase your reward. Their expertise in navigating complex legal procedures and building a strong case for the government is invaluable.
- Relator's Involvement in the Fraud: While the government encourages individuals with knowledge of fraud to come forward, even if they were involved, the level of complicity can impact the reward. [3]
- The Scope and Damage of the Fraud: If the fraud has an especially significant impact on individuals, the government, or resources, the reward may be increased.
Whistleblower Retaliation Protection
The False Claims Act offers strong protection against a wide range of retaliatory actions, including wrongful termination, demotion, harassment, and other forms of workplace mistreatment. [4] If you face negative employment consequences for filing a qui tam case, you are entitled to seek compensation for lost wages, emotional distress, and other damages. [5]
Examples of Fraud We Handle
At Goldberg Kohn, our dedication to justice is more than just words – it's reflected in decades of experience fighting fraud. We've stood alongside whistleblowers who have recovered millions of taxpayer dollars, and we've seen firsthand how their courage leads to real accountability.
Our firm specializes in a wide range of False Claims Act cases, including:
- Medicare and Medicaid Fraud
- Hospital Fraud
- Kickback Schemes
- Nursing Home and Home Health Fraud
- Medical Device Fraud
- Pharmaceutical Fraud
- Physical Therapy Fraud
- Customs Fraud
- Defense Contractor Fraud
- Coronavirus/COVID-19 Fraud
- Education Fraud
- Financial Fraud
- Procurement Fraud
Read more about these types of fraud and their ramifications.
Are You Ready to Report Fraud?
We understand that reporting fraud can be an intimidating process. We commend your courage, and we're committed to providing you with the support and guidance you need every step of the way.
If you have knowledge of potential fraud against the government, we encourage you to take action. Explore our website to learn more about the False Claims Act and how to report fraud. Our experienced attorneys are dedicated to helping whistleblowers navigate the legal process and protect their rights. If you're ready to blow the whistle, we're here to listen. Contact us for a free, confidential consultation, and let's discuss how we can help.
