March 25, 2024

Financial Incentives for Whistleblowers

qui tamQui tam pro domino rege quam pro se ipso in hac parte sequitur. This latin phrase translates to, “who sues on behalf of the King as well as for himself.” The term ‘qui tam’ was pulled from this phrase, which describes cases or lawyers and attorneys that defend a person labeled as a ‘whistleblower’ or ‘relator’. These terms define someone who revealed fraudulent activities within their organization, motivated to defend the financial integrity of the federal government. Berg & Androphy plays a major role in qui tam cases defending these brave whistleblowers. With a wealth of trial experience and a national presence, Berg & Androphy are well-equipped to handle qui tam cases effectively. Their thorough approach, from leading rigorous investigations to leveraging sophisticated resources, demonstrates a strong commitment to justice, even in complex cases where government support is not present. This makes them a trusted ally for whistleblowers seeking to expose fraud.

Understanding Qui Tam Cases

Qui tam is filed under The False Claims Act. The importance of this provision to each united state is immense and cannot be overstated. Not only does this provision protect fraud against the federal government, it has historically proven to be an incentive to persons witnessing fraud to expose and aid in recovering the funds. With the addition of $2.68 billion recovered in the fiscal year 2023, the cumulative total of funds reclaimed from fraud now stands at more than $75 billion. The role a qui tam whistleblower plays in a qui tam case is simple: help prove and expose the fraud, and the government will reward those triumphant efforts with a portion of the recovered funds. Each qui tam case is vital for protecting the government and citizens alike. For example, these cases often bring to light healthcare fraud, emphasizing the crucial role of exposing a false claim. Revealing fraud, medical malpractice, and neglect helps dismantle those untrustworthy healthcare businesses by destroying public trust in them.

The Role of Financial Incentives In A Qui Tam Action

Incentive: payment and motivation to stimulate a greater output. When dealing with large companies or high-ranking individuals committing crimes, fear can silence witnesses. Yet, with bravery, a skilled legal team like Berg and Androphy, and some incentives, this fear can be overcome. This approach is acknowledged and supported by the government, which offers incentives to embolden whistleblowers. Below, discover some incentives for a relator facing a qui tam action:

  • Compensation for lost wages and benefits due to wrongful termination.
    •    Job reinstatement or pay covering the period until a new job is secured.
    •    Reimbursement for job search expenses.
    •    Compensation for emotional distress.
    •    Potential for punitive damages.
    •    Coverage of legal fees and court costs.

Eligibility for Whistleblower Rewards

The whistleblower’s rewards depend on certain factors pertaining to the qui tam lawsuit. They must provide significant and useful information to the government and the individual’s contribution to the case and the action taken is assessed. For a successful qui tam case, prompt reporting of the fraud is essential and priority is given if the information was not previously known to the government, especially cases that expose nationwide fraudulent practices.

The personal and professional impact due to filing the complaint, and detailed, firsthand knowledge of the fraud affects the outcome as well. Furthermore, efforts made by the whistleblower to halt or report fraud to a supervisor are considered. Whistleblowers who falsely present themselves as victims while secretly participating in the fraud will likely see their claim fail. How much the qui tam case helped stop the fraud is also looked at, as well as how the whistleblower found out about the fraud in the first place.

If you feel in the dark and need questions answered about the process of filing a qui tam lawsuit and legal hurdles, Berg and Androphy is here to help.

Calculation of Whistleblower Awards

Explore the following acts designed to encourage whistleblowers:

  • The False Claims Act: Offers 15-30% of recovered government funds for reporting fraud in government contracts and programs.
    •    The Dodd-Frank Act: Provides 10-30% of recovered funds for assisting in securities and commodities fraud cases.
    •    The IRS Whistleblower Law: Awards 15-30% of collected sanctions for aiding in tax fraud cases.

Berg and Androphy’s Approach to Qui Tam Representation

Successful qui tam cases start with an experienced and successful team. Here are a few highlights from our Qui Tam Results, where you can read in more detail our victories and see why relators choose us to lead them to success.

“Joel M. Androphy and Janis Gorton along with the United States and the State of Texas, have reached a $5 million settlement in a False Claims Act case against Health Services Management, Inc. (HSM) and Huntsville Health Care Center (HHCC) involving billing for poor quality of care and worthless services provided to nursing home patients.”

“Joel Androphy, David Berg, Sarah Frazier, and Zenobia Bivens won a $21 million settlement to end a False Claims Act case brought by whistleblowers alleging fraudulent Medicaid claims and kickbacks to pharmacies that prescribed an antidepressant drug.”

“Joel Androphy, David Berg, Sarah Frazier, and Rachel Grier, with Esdaile, Barrett, Jacobs & Mone, won a $31 million settlement with drug manufacturer, Organon USA Inc., in two qui tam actions in the United States District Courts in Massachusetts and Texas.”

Conclusion

A qui tam whistleblower plays a pivotal role in the battle against fraud, serving as the eyes and ears on the ground to expose wrongdoing that might otherwise go unnoticed. The financial incentives offered are not just rewards for bravery, but a true recognition of the courage and risks undertaken by these individuals. They ensure that those who step forward to shed light on fraudulent practices in a qui tam lawsuit feel and know they are supported and compensated for their invaluable contributions.

We encourage anyone with knowledge of fraudulent activities to come forward. Your actions not only stand to benefit you financially but also contribute significantly to the integrity and accountability of our systems. With the right legal team by your side, such as Berg and Androphy, you are not alone in this journey. Your bravery could be the catalyst for change, safeguarding public funds and ensuring justice prevails. Let your voice be heard and be part of the solution in the fight against fraud.