Whistleblowers play an important role in protecting the public from fraud and abuse of government funds. The False Claims Act (FCA) is a federal law that rewards whistleblowers who come forward with information about fraud against the government. The FCA allows whistleblowers to file qui tam lawsuits on behalf of the government and to receive a portion of the recovered funds.
How The False Claims Act Rewards Whistleblowers
Qui tam whistleblowers are entitled to a reward for their role in reporting government fraud. This reward is a result of the False Claims Act (FCA), which was enacted in 1863 to help combat fraud against the government. The FCA allows individuals to bring a lawsuit against a person or company that has committed fraud against the government. The lawsuit is filed on behalf of the government and is known as a qui tam action. If the lawsuit is successful, the whistleblower, known as the relator, is entitled to a portion of the money recovered. The reward for qui tam whistleblowers is typically between 15-30% of the total amount recovered by the government. This percentage is determined by the court and is based on the importance of the information provided by the whistleblower. The reward can be as high as 30% if the information provided is instrumental in the successful prosecution of the case. Whistleblowers are also entitled to reimbursement for their legal fees, as well as protection from any form of retaliation from the defendant or their employer. This protection is provided by the Whistleblower Protection Act of 1989.
Whistleblowers Are Important In Protecting The Government From Fraud, And There Is A Long History Of Significant Whistleblower Rewards
Since the FCA was amended in 1986, there have been numerous qui tam settlements and whistleblower awards that have resulted in billions of dollars being returned to the government. Some larger qui tam settlements and whistleblower awards in recent years are representative of the process.
- In 2018, Johnson & Johnson agreed to pay $2.2 billion to resolve criminal and civil liability arising from allegations that it promoted certain prescription drugs for uses that were not approved by the U.S. Food and Drug Administration (FDA). The whistleblower in this case was awarded $168 million.
- In 2017, Pfizer Inc. agreed to pay $325 million to resolve allegations that it violated the FCA by paying kickbacks to health care providers to induce them to prescribe Pfizer’s drugs. The whistleblower in this case was awarded $51 million.
- In 2016, Abbott Laboratories agreed to pay $1.5 billion to resolve allegations that it violated the FCA by marketing its prescription drug Depakote for uses not approved by the FDA. The whistleblower in this case was awarded $84 million.
- In 2015, DaVita Healthcare Partners Inc. agreed to pay $450 million to resolve allegations that it violated the FCA by submitting false claims to the Medicare program for unnecessary dialysis treatments. The whistleblower in this case was awarded $38 million.
- In 2014, GlaxoSmithKline agreed to pay $3 billion to resolve criminal and civil liability arising from allegations that it unlawfully promoted certain drugs and failed to report safety data to the FDA. The whistleblower in this case was awarded $96 million.
- In 2013, Novartis Pharmaceuticals Corporation agreed to pay $390 million to resolve allegations that it offered kickbacks to specialty pharmacies in exchange for recommending that patients use its drugs. The whistleblower in this case was awarded $25 million.
- In 2012, Abbott Laboratories agreed to pay $1.5 billion to resolve allegations that it violated the FCA by marketing its prescription drug Depakote for uses not approved by the FDA. The whistleblower in this case was awarded $84 million.
- In 2011, Pfizer Inc. agreed to pay $2.3 billion to resolve criminal and civil liability arising from allegations that it unlawfully promoted certain drugs and paid kickbacks to health care providers. The whistleblower in this case was awarded $102 million.
- In 2010, Merck & Co. agreed to pay $950 million to resolve allegations that it violated the FCA by marketing its drug Vioxx for uses not approved by the FDA. The whistleblower in this case was awarded $68 million.
These are just a few examples of the larger qui tam settlements and whistleblower awards in recent years. Whistleblowers play an important role in protecting the public from fraud and abuse of government funds, and the FCA provides an important incentive for individuals to come forward with information about fraud against the government. If you have information about fraud against the government, you should contact a whistleblower attorney to discuss your rights and potential rewards.
At Price Armstrong, our qui tam attorneys have extensive experience litigating fraud and representing whistelblowers under the False Claims Act. If you have information about potential fraud against the government, you may have a valuable claim as a whistleblower. Contact us today for a free initial consultation and review of your case.
