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Qui Tam

Qui Tam or Whistle-Blower laws have existed in Western cultures for over 600 years. One of the first examples of Qui Tam legislation can be traced back to the Civil War, when Congressional hearings disclosed widespread instances of military contractor fraud that included defective products, substitution of inferior material, and illegal price gouging of the Union Army.

At the urging of Abraham Lincoln, Congress enacted the Civil False Claims Act, including Qui Tam provisions, as a tool to fight fraud. Between 1863 and 1986 the law was seldom used. As a result of 1986 amendments, Qui Tam actions have increased dramatically and have been the most effective and successful means of combating procurement and program fraud. Since 1986, Qui Tam recoveries have exceeded $1 billion with most of the successes involving fraud in Defense and Health Care programs.

The False Claims Act states that whistle-blowers be rewarded with a percentage of the money that the government recovers as a result of their Qui Tam lawsuits. This provision helps encourage people to assist the government in reducing Medicare fraud; defense fraud and other kinds of fraud despite the effect whistle-blowing might have on their jobs and personal lives.

Under the False Claims Act the government may recover up to three times the amount of money it lost as a result of the defendant's fraud. The whistle-blower's share is calculated based upon the amount the government recovers, not the actual losses.

A number of factors determine how much money a whistle-blower will receive if the government is able to recover money from the defendant. If the government joins the case, the whistle-blower is entitled to at least 15 percent but not more than 25 percent of what the government recovers.

If the government declines to join the case and the whistle-blower continues with a suit against the defendant, the whistle-blower is entitled to at least 25 percent but not more than 30 percent of the money the government recovers.

If you are a current or former employee and have information on any illegal activities, please fill out the form at the right for a free case evaluation by a qualified attorney.
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Famvir Fraud Alleged in Novartis Whistleblower Lawsuit

Nov 29, 2007 | Parker Waichman Alonso LLP
The value of Famvir, a genital herpes treatment cold sores and shingles, was fraudently inflated by Novartis, charges an ex-employee of the company.  Former Norvatis brand director Carol Shull alleged in her lawsuit-filed in New Jersey state court-that she was wrongfully terminated.  Shull claimed she was fired this past March after complaining repeatedly for nearly two years about attempts by the drug maker to falsely overstate the value of Famvir on its books.  The Swiss...

Toyota, General Motors Named in Whistleblower Lawsuit Charging Managers Tried to Cover Up Defective Cars

Nov 21, 2007 | Parker Waichman Alonso LLP
Toyota and General Motors have been named in a lawsuit that alleges that managers at a California auto plant ignored serious problems, including defective seatbelts and breaking systems,  found in cars rolling off the facility’s assembly line.  The plaintiff, a certified auditor at the plant, accuses her superiors of deleting or downgrading defects from her vehicle reports.  The Toyota and General Motors whistleblower lawsuit also claims that managers retaliated against the...

Texas Nuclear Weapon Facility Under Scrutiny

Dec 21, 2006 | NewsInferno.com
In a letter sent last week to Department of Energy Secretary Samuel Bodman, the Project on Government Oversight (POGO), a Washington, D.C.-based watchdog, cited a number of “serious safety problems” at Pantex, a nuclear weapons assembly facility near Amarillo, Texas, run by BWX Technologies. The source of their information was an anonymous letter from a group of Pantex whistleblowers who claim to have a combined 189 years of experience at the plant. The employees’ letter...

BP closes some Alaska wells after allegations

Jul 19, 2006 | AP
Britain’s BP PLC is closing 12 oil wells on Alaska’s North Slope as a precaution after whistleblowers alleged more than 50 were leaking. The wells were in the process of being shut down Tuesday, BP spokesman Darren Beaudo said. The action came after workers told the Financial Times of London about the leaks, according to the newspaper, which first reported the shutdowns on its Web site. Most of the shuttered wells were in Prudhoe Bay, Beaudo told The Associated Press. The...

$150 Million GlaxoSmithKline Settlement Brings Whistleblowers $26 Million

Sep 24, 2005 | www.newsinferno.com
Four whistleblowers from a pharmacy in Key West, Florida, are splitting $26 million of a $150 million settlement by international pharmaceutical giant GlaxoSmithKline, after the four partners exposed the drug company’s overcharging Medicare and Medicaid for two drugs used to treat cancer. GlaxoSmithKline, a firm based in Philadelphia and London, which produces the antidepressant Wellbutrin, was accused of overpricing Zofran (1994-2002) and Kytril (1994-2000), two drugs commonly used to...

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