The Qui Tam provisions of the False Claims Act allow persons and entities with evidence of fraud against the Federal Government, or federal programs or contracts, to sue the wrongdoer on behalf of the United States Government. Qui tam is short for “qui tam pro domino regequam pro se ipso in hac parte sequitur,” which means “who pursues this action on our Lord the King’s behalf as well as his own.”
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Financial Incentives for Whistleblowers
Individuals who successfully bring a Qui Tam case may recover 15% to 30% of the government’s total recovery. These provisions incentivize whistleblowers to retain a qualified whistleblower attorney to expose fraudulent activity against taxpayers.
What Constitutes a False Claims Act Violation?
False Claims Act lawyers handle a variety of violations, including:
- Knowingly presenting (or causing to be presented) to the Federal Government a false or fraudulent claim for payment
- Knowingly using (or causing to be used) a false record or statement to get a claim paid by the Federal Government
- Conspiring with others to get a false or fraudulent claim paid by the Federal Government:
- Knowingly using (or causing to be used) a false record or statement to conceal, avoid, or decrease an obligation to pay money or transmit property to the Federal Government.
How Do You File a Qui Tam Lawsuit in Colorado?
Whistleblower attorneys in Colorado understand that False Claims Act cases are filed in federal court under seal. This secrecy allows the government time to investigate the allegations without alerting the defendant. The seal typically lasts for 60 days but may be extended.
What Happens if the Government Intervenes in a Qui Tam Case?
At the end of the sealed investigative period, the government decides whether to join, or intervene, in the qui tam lawsuit. If the government joins the case, the litigation is conducted jointly by the government and the whistle-blower’s attorney, with the government as lead counsel. If the government declines to intervene, the whistle-blower may go forward with the lawsuit and assumes primary responsibility for running the case.
Why Is Timing Important in a False Claims Act Lawsuit?
The timing of a lawsuit can be critical. The first person to file a case under the False Claims Act for a particular fraud preempts all other cases. So, it is important for a whistle-blower to file action before another individual does so. It is also important to remember that False Claims Act claims must be filed within specific time frames. The False Claims Act not only allows a whistle-blower to file suit in the name of the government, but also protects whistle-blowers against retaliation for filing or investigating a potential action.
Colorado Medicaid False Claims Act: Key Provisions
The Colorado Medicaid False Claims Act imposes liability on persons who knowingly submit false claims to Colorado’s medical assistance programs, including Medicaid. Whistle-blowers may recover between 15% and 25% of any proceeds from the action or settlement if the state intervenes in the case, and between 25% and 30% if the state decides not to intervene. The court may reduce the value of the award if the plaintiff or relator planned or initiated the fraud, or if the action is largely based on disclosures in the media or public hearings. Plaintiffs must file their complaint within specific time frames; otherwise, their claim may be lost.
What Is a Qui Tam Relator?
The individual initiating a Qui Tam case is called a relator. Whether or not the government intervenes, the relator may receive a significant portion of the recovery. A whistleblower law firm can guide relators through every step of the case.
For guidance on False Claims Act cases, contact the experienced whistleblower attorneys at Baird Quinn.
What Protections Exist Under the Sarbanes-Oxley Act for Whistleblowers?
Baird Quinn also represents clients in retaliation claims under the Sarbanes-Oxley Act (SOX). These cases often involve employees who report securities or accounting fraud. Our clients include executives, attorneys, managers, and accountants.
How the Sarbanes-Oxley Act and Dodd-Frank Act Protect Whistleblowers
The Sarbanes-Oxley Act (SOX) has significantly shaped whistleblower protections for employees at publicly traded companies. Under SOX, workers are protected from retaliation when reporting issues like accounting fraud, false statements to investors, or securities violations.
To pursue a claim, employees must act quickly. SOX requires whistleblower retaliation claims to be filed with the U.S. Department of Labor within 180 days of the retaliatory act. Because of this short window, working with a qualified whistleblower attorney is crucial for filing, analyzing, and litigating SOX claims effectively.
Dodd-Frank Act: Expanded Whistleblower Protections
The Dodd-Frank Act of 2010 broadened SOX whistleblower protections in several key ways:
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Extended SOX coverage to employees of subsidiaries of publicly traded companies, if their financials are consolidated with the parent company.
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Doubled the statute of limitations for retaliation claims from 90 days to 180 days, aligning it with practical timelines for legal response.
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Invalidated mandatory arbitration clauses that attempt to waive SOX rights or remedies.
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Guaranteed whistleblowers the right to a jury trial in federal court.
These updates ensure that more employees are protected and able to assert their rights in a public forum.
Legal Representation in SOX Whistleblower Cases
SOX claims are complex and often involve high stakes. Whether you are an executive, accountant, compliance officer, or another insider with firsthand knowledge of misconduct, partnering with a skilled whistleblower lawyer is essential to securing favorable outcomes and protecting your career.
Baird Quinn’s Colorado whistleblower attorneys have the experience necessary to evaluate, file, and litigate whistleblower retaliation claims under both SOX and Dodd-Frank. Contact us to discuss your situation or learn more about your legal rights under federal whistleblower laws.
Frequently Asked Questions About Whistleblower & Qui Tam Claims
What is a Qui Tam whistleblower lawsuit?
A “Qui Tam” lawsuit is a provision under the False Claims Act that allows a private citizen (called a “relator”) who has evidence of fraud against the federal government to sue the wrongdoer on behalf of the United States. These cases are filed under seal (in secret) to allow the government time to investigate the allegations.
How much of a reward can a whistleblower get?
To incentivize individuals to expose fraud, the False Claims Act offers significant financial rewards. If the lawsuit is successful, the whistleblower can recover between 15% and 30% of the government’s total financial recovery. Similar incentives exist under the Colorado Medicaid False Claims Act.
Can I be fired for reporting corporate fraud?
No. Federal laws, including the False Claims Act, the Sarbanes-Oxley Act (SOX), and the Dodd-Frank Act, have strict anti-retaliation provisions. If your employer fires, demotes, or otherwise punishes you for reporting securities violations, accounting fraud, or false claims, you have the right to sue for retaliation damages.
How long do I have to file a whistleblower retaliation claim?
Timing is absolutely critical in whistleblower cases. Under the Sarbanes-Oxley Act (SOX), as expanded by the Dodd-Frank Act, employees typically have 180 days from the date of the retaliatory act to file a whistleblower retaliation claim with the U.S. Department of Labor. Additionally, the first person to file a False Claims Act lawsuit preempts all others, so you must act quickly.