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Qui Tam False Claims Act Lawsuits

Qui Tam | Lawsuits, Lawyers | Whistleblowers, Moneys Recovered, Civil False Claims Act | Defective Products, Inferior Material, Illegal Price Gouging, Union Army

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.

Legal Help For Victims Affected By Qui Tam

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 or call us at 1-800-LAW-INFO (1-800-529-4636).

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SEC Gives Final Approval to Security Fraud Whistleblower Rules

May 27, 2011 | Parker Waichman LLP
The Securities and Exchange Commission (SEC) has approved new rules for securities fraud whistleblowers.  According to a report in The Los Angeles Times, under the new rules, whistleblowers could be awarded multimillion-dollar payouts for reporting securities fraud.The new whistleblower provisions were part of the Dodd-Frank Wall Street reform law.   Under the law, the SEC may award between 10 and 30 percent of any monetary sanctions that exceed $1 million to whistleblowers...

Glaxo to Pay $750 Million to Settle Federal Whistleblower Suit Over Defective Paxil, Other Drugs

Oct 27, 2010 | Parker Waichman LLP
GlaxoSmithKline has agreed to plead guilty and pay a $750 million fine to settle a US Justice Department investigation into the manufacture of defective pills, including the antidepressant Paxil, at its plant in Cidra, Puerto Rico. The government’s case against Glaxo stemmed from a whistleblower lawsuit filed by a former employee. Under the federal whistleblower statute, that individual is entitled to receive $96 million from the Glaxo settlement. The GlaxoSmithKline settlement...

Big Payoffs Possible for Securities Fraud Whistleblowers Thanks to "Wall Street Tip-Off Law"

Aug 16, 2010 | Parker Waichman LLP
The Dodd-Frank Act, passed by the US Congress and signed by President Obama earlier this summer, contains some attractive incentives for securities fraud whistleblowers. The law empowers the U.S. Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) to award between 10 percent and 30 percent of any monetary sanctions that exceed $1 million to whistleblowers who provide information leading to a successful enforcement. According to a report in the...

Feds Seek to Join St. Jude Whistleblower Lawsuit

Aug 9, 2010 | Parker Waichman LLP
St. Jude Medical Inc. is facing scrutiny from the US Justice Department over an alleged kickback scheme. According to a Reuters report, the US Attorneys Office in Boston is seeking to intervene in a whistleblower lawsuit brought by a former employee of the heart device maker. Charles Donigian, who worked as a technical services specialist for St. Jude between 2004 and 2007, filed suit in 2006 accusing St. Jude of paying kickbacks to doctors, hospitals and other health care providers to induce...

Tax Whistleblower Tips To IRS Skyrocket

Oct 14, 2009 | Parker Waichman LLP
Tax cheats beware!  It looks like a 2006 law that increased monetary rewards for Federal tax whistleblowers is working.  According to an Internal Revenue Service (IRS) report detailed by The New York Times, tips about suspected tax cheats owing at least $2 million have jumped more than tenfold.According to the IRS Web site, its Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided by the...

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