August 7, 2024

The Financial Rewards and Risks of Being a Qui Tam Whistleblower

In legal battles against corporate fraud, the qui tam whistleblower, also known as a relator,  begins the legal process. These brave individuals come forward to expose whatever fraudulent false claim was committed against the federal government, often at significant personal and professional risk. However, the financial rewards for their courage can be significant, making the decision to blow the whistle one filled with both sides of opportunity and peril.

Whistleblower’s actions can lead to sizable recoveries for the government, which, in turn, benefits taxpayers and helps deter future fraud. Beyond the financial aspects, many whistleblowers find a sense of fulfillment in knowing they have made a meaningful impact on society by holding wrongdoers accountable and promoting transparency. Before beginning the process of a qui tam lawsuit, it’s important to understand the paths ahead when deciding to blow the whistle.

The Financial Incentives

One of the most compelling reasons someone may choose to become a qui tam whistleblower is the potential for significant financial rewards. Under the False Claims Act, whistleblowers, also known as relators, can receive a portion of the recovered funds if their qui tam case is successful. This reward can range from 15% to 30% of the total recovered amount, based on the whistleblower’s involvement and the value of their information.

For instance, in cases where the federal government intervenes, whistleblowers typically receive between 15% and 25% of the recovered amount. In qui tam cases where the government does not intervene, and the whistleblower pursues the qui tam litigation independently, the reward can increase to 25% to 30%. Given that settlements and judgments in qui tam lawsuits can reach millions or even billions of dollars, whistleblowers could gain notable financial rewards.

The Risks To Consider

Even though there is potential for financial gain, becoming a qui tam whistleblower is not without significant risks. These risks span across personal, professional, and legal domains, and they can have long-lasting impacts on the whistleblower’s life.

Professional Repercussions: Qui tam relators often face retaliation from their employers, which can include demotion, harassment, or even wrongful termination. The professional stigma associated with being a relator can also make it challenging to find new employment within the same industry.

Personal Strain: The process of blowing the whistle can be emotionally and mentally taxing. A relator may experience stress, anxiety, and isolation due to the adversarial nature of the proceedings and the potential backlash from colleagues and the community.

Legal Challenges: Relators must navigate a complex legal landscape, sometimes without a guarantee of success. Even with strong evidence, the legal process can be prolonged, and the outcome is always uncertain. In some cases, a qui tam relator may also face counterclaims or legal actions from the whoever they expose. The intricacies of a qui tam lawsuit can add further complexity and stress to the situation.

Balancing Rewards and Risks

Given the significant rewards and the equally substantial risks, possible qui tam whistleblowers must carefully weigh their decision and consider what they’re ready for. It’s essential to seek guidance from experienced legal counsel, such as our team at Berg & Androphy. With broad expertise in qui tam litigation and an impressive track record of successful outcomes, Berg & Androphy’s team offering expert qui tam attorney care can provide the necessary guidance and support to navigate a qui tam case successfully.

Choosing to Blow the Whistle

Becoming a qui tam whistleblower involves a complex interplay of risks and rewards. While the personal and professional challenges can be significant, it’s important to also consider the substantial financial incentives and vindication involved. By seeking the counsel of experienced legal professionals and thoroughly understanding the potential of both outcomes in qui tam lawsuits, including the possibility of negotiating a qui tam settlement agreement, whistleblowers can make more informed decisions that align with their values and circumstances.

At Berg & Androphy, we recognize the courage of qui tam whistleblowers and are committed to providing the highest level of legal representation to make sure your efforts lead to justice and, when possible, remarkable financial rewards. If you are considering blowing the whistle on fraudulent claims, our dedicated qui tam lawyer and team is here to help you understand the intricacies of the process and stand by your side every step of the way.