The federal False Claims Act’s qui tam provisions are among the most important tools for exposing fraud involving government funds. However, qui tam cases involve complex procedural requirements, filing rules, and deadlines, making experienced legal guidance particularly important.
Blowing the whistle on fraud or unlawful activity takes courage, and having the right legal team can make a significant difference. At Matern Law Group, we represent whistleblowers and employees who report wrongdoing, including cases involving fraud against government programs. Our Seattle whistleblower and qui tam lawyers can help employees understand applicable federal and Washington laws while providing confidential guidance throughout the legal process.
The federal False Claims Act allows qualifying private individuals, known as relators, to bring qui tam lawsuits on behalf of the United States when they have information concerning certain types of fraud involving federal government funds.
False Claims Act violations can involve knowingly submitting false or fraudulent claims for payment, using false records or statements in connection with government claims, or improperly avoiding obligations to repay money owed to the federal government.
Potential examples include:
The False Claims Act can impose substantial financial liability on violators, including civil penalties and multiple damages. In successful qui tam cases, eligible whistleblowers may receive a percentage of the government’s recovery.
The law also contains protections against certain forms of retaliation directed at employees and others because of lawful acts taken in furtherance of a False Claims Act action or efforts to stop violations of the Act.
Fraud can take many forms and may be governed by Washington State or federal law depending on the circumstances. Fraud generally involves intentional deception or misrepresentation for financial or other improper gain.
Potential fraud can arise in areas including:
Not every act of fraud creates a qui tam claim. Qui tam litigation under the federal False Claims Act generally concerns fraud or false claims involving federal government money or property.
Employees who discover potentially fraudulent conduct should consider obtaining legal advice before taking action because the type of fraud, source of government funding, evidence available, and manner in which information is disclosed can affect potential legal rights.
The federal False Claims Act is sometimes called the “Lincoln Law” because its origins date to the Civil War and the administration of President Abraham Lincoln.
The law was originally enacted to combat fraud by contractors supplying the federal government. Today, it remains an important mechanism for addressing fraud involving federal funds and programs.
Its qui tam provisions allow qualifying private individuals with information about potential False Claims Act violations to bring lawsuits on behalf of the federal government. Qui tam complaints are subject to special procedures, including initially being filed under seal while the federal government investigates the allegations and determines whether to intervene in the case.
If a qui tam action results in a government recovery, an eligible relator may receive a percentage of the amount recovered. The percentage can depend on factors including whether the government intervenes in the action.
Because the False Claims Act contains detailed procedural requirements, employees considering a qui tam action should consider consulting an attorney before publicly disclosing allegations or filing a claim.
Federal healthcare programs are subject to laws designed to prevent improper financial relationships from influencing medical referrals.
The federal Physician Self-Referral Law, commonly known as the Stark Law, generally prohibits physicians from making certain referrals for designated health services payable by Medicare or Medicaid to entities with which the physician or an immediate family member has a financial relationship, unless an exception applies.
Designated health services can include certain:
Healthcare arrangements may also implicate the federal Anti-Kickback Statute or other healthcare fraud laws.
In certain circumstances, claims for government reimbursement arising from prohibited financial arrangements may also create issues under the federal False Claims Act. Healthcare fraud and self-referral cases are highly fact-specific, and not every regulatory violation automatically creates False Claims Act liability.
A qui tam lawsuit is a legal action in which a private individual brings certain fraud allegations on behalf of the government.
Under the federal False Claims Act, a qualifying whistleblower may file a qui tam action involving false or fraudulent claims for federal government funds. These cases frequently arise in industries that receive substantial federal funding or perform work under government contracts, including healthcare, defense, construction, technology, education, and government procurement.
Unlike an ordinary lawsuit, a federal qui tam complaint is initially filed under seal. The complaint and supporting information are provided to the government, which is given an opportunity to investigate the allegations and determine whether it wishes to intervene.
The False Claims Act also includes anti-retaliation protections. Depending on the circumstances, employees who experience termination, demotion, threats, harassment, reduced responsibilities, or other adverse treatment because of protected False Claims Act activity may have a separate retaliation claim.
Whether you’ve experienced retaliation or need guidance about reporting suspected government fraud, our Seattle employment and whistleblower attorneys can help you evaluate your rights and legal options.
Federal and Washington State laws provide whistleblower protections in a variety of circumstances. The particular protections available depend on factors such as the employee’s occupation, employer, type of misconduct reported, who received the report, and the law governing the underlying conduct.
Protected whistleblower activity can potentially involve:
Washington employees may also have protections against wrongful termination in violation of public policy when they are fired under circumstances that violate a clear mandate of public policy.
Whistleblower retaliation can take many forms. An employee may experience termination, demotion, reduced hours, undesirable assignments, threats, discipline, negative performance reviews, exclusion from workplace opportunities, or other adverse treatment after raising protected concerns.
Employees who suspect retaliation should document the timeline carefully. Emails, text messages, performance evaluations, disciplinary records, reports of misconduct, and communications with supervisors or government agencies may become important evidence.
Whistleblower laws vary considerably in their requirements and deadlines. Some laws protect internal reports, while others may require reports to particular government agencies or other designated parties. Employees considering reporting suspected wrongdoing should consider obtaining legal advice about the protections that may apply before taking action.
If you’re considering taking action, contact us for a confidential consultation. Our Seattle whistleblower and qui tam attorneys can help you understand your rights and evaluate your options for reporting wrongdoing or responding to workplace retaliation.
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