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The Public Disclosure Bar

The False Claims Act qui tam provision allows private citizens to act as whistleblowers, and file a lawsuit on behalf of the government if they are aware of fraud taking place. These whistleblowers, or relators, are eligible to receive a portion of the money the government recovers if the lawsuit is successful.

It is important to note that the False Claims Act is designed to encourage people to report fraud that might otherwise go undetected; it is not designed to reward people who repeat allegations that have already been publicized. To that end, the False Claims Act includes language stipulating that the court will dismiss a case if substantially the same allegations contained therein were already publicly disclosed and the relator bringing the action is not an original source of the information. This section of the Act is commonly referred to as the "public disclosure bar". More

Court Rejects False Claims Act Complaint against City of Chicago Due to Lack of Evidence

The City of Chicago – like many other large, metropolitan cities – relies on grant funding, some of which comes from the federal government, to pay for important services that are not covered by local taxes or fees. The recipients of such federal grants are required to comply with applicable federal laws and regulations in carrying out the use and purposes of the funds and the failure to do so could result in False Claims Act liability for misuse of government funds. More

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