If you work in fields like healthcare, defense manufacturing, or other areas that involve government contracting or insurance claims, you are likely privy to important information on a daily basis. You may be an expert in your field, and be able to spot fraudulent or inflated claims that outsiders would overlook. This expertise is valuable not only to your employer, but also as a check on the system, making you able to report fraud or other unethical billing behaviors that other people might miss.
If you recognize an attempt to scam the government out of funds and you come forward to report it, then you may be able to receive a percentage of whatever amount is recouped. This process of recoupment is called a qui tam lawsuit. Becoming a whistleblower is the ethical choice to report wrongdoing, but it can also be financially lucrative to come forward and shed light on the illegal activity that is happening.
If you have information about fraud, the best thing to do is to speak with an experienced Arkansas whistleblower lawyer during a confidential consultation. The team at Tycko & Zavareei LLP is ready to answer any questions you might have about becoming a whistleblower and can discuss your rights, protections, and options. A whistleblower lawyer can also advise you on if you have a viable case, what information is needed to file a successful qui tam lawsuit, and what amount of money may be at stake by coming forward.
Arkansas Qui Tam Lawsuits
A qui tam lawsuit is a civil suit filed by a third party, known as the “relator.” The relator is usually the whistleblower, often an employee of a company that is engaging in attempts to defraud the federal government. In a qui tam lawsuit, the plaintiff is the government, and the relator is the person who is bringing the suit on their behalf.
A qui tam lawsuit, also known at times as a whistleblower lawsuit, offers the government the opportunity to recoup public funds that were misappropriated or falsely claimed by a person or company.
In a qui tam lawsuit, the person who blows the whistle on the fraudulent actions is eligible to receive a share of the financial settlement recouped by the government. This incentivizes average Americans to come forward with information about wrongdoing that may be occurring in their workplaces.
In cases that involve extensive or ongoing fraud, as well as large government contracts, the amounts recouped can reach into the millions. In a qui tam lawsuit, the relator (the whistleblower) can receive up to 30% of the government’s total recoupment.
Other Financial Penalties
Under the False Claims Act, the amount at stake in a qui tam lawsuit is not only the amount of money a company or individual defrauds the government. Any person who knowingly submits false claims to the government is currently liable for treble the amount of damages, as well as an additional penalty per claim. The amount of that financial penalty takes inflation into consideration.
Federal and Arkansas Whistleblower Laws
Coming forward as a whistleblower can be a complex process, as qui tam lawsuits are governed by federal law. Under the False Claims Act, private citizens can bring qui tam lawsuits and are eligible to receive a portion of the financial penalties awarded to the government from a successful suit.
False Claims Act
The False Claims Act was first enacted by President Abraham Lincoln in 1863 in an attempt to limit defense contractor fraud during the Civil War. The law has been since amended several times and is now one of the strongest anti-fraud laws in the United States.
In addition to providing the framework for qui tam payouts to whistleblowers, the False Claims Act also provides several important protections for those who come forward. Under the False Claims Act, an employer may not retaliate against an employee for becoming a whistleblower in a qui tam suit.
Retaliatory acts may look like, but are not limited to:
- Reducing a whistleblower’s hours
- Reducing a whistleblower’s salary or wages
- Discriminatory comments or actions against a whistleblower
- Firing a whistleblower
It is important to note that the False Claims Act was written to be as expansive as possible, to incentivize anyone to come forward with information that can save taxpayer money and fight fraud. Therefore, a whistleblower does not necessarily have to be a U.S. citizen. The law may also cover criminal activity, as well as civil.
Arkansas Whistleblower Laws
The Arkansas Medicaid Fraud False Claims Act rewards whistleblowers who report organizations that submit false claims to the Arkansas Medicaid program and/or give or accept kickbacks in exchange for services and prescriptions that are reimbursed through the state’s Medicaid program. Whistleblowers may be eligible for up to 10% of the funds the state is able to recover in a successful lawsuit.
Whistleblower protections specific to Arkansas are evolving due to recent Arkansas Supreme Court decisions. For this reason, it is best to speak with an experienced whistleblower attorney. Tycko & Zavareei LLP are up to date on the latest elements of whistleblower law, both federal and state. Our team can provide more information about the specifics of your own possible claim, and help you decide what decision is best for you.
Remember, the conversations you have with one of our Arkansas whistleblower lawyers are confidential. For this reason, speaking with a whistleblower lawyer is usually the best source of guidance about how to proceed with information about fraudulent claims against the government.
Recent Whistleblower Payouts
In 2021, settlements and judgments resulting from the False Claims Act reached over $5.6 billion. Healthcare accounted for the largest percentage of payouts, with over $5 billion in total from pharmaceutical companies, hospitals, medical device manufacturers, and more who had attempted to defraud public funds. This taxpayer money was reclaimed by the federal government, with a percentage going to the approximately 598 whistleblowers who came forward with information that led to the suits.
Contact an Arkansas Whistleblower Lawyer
If you have information about tax fraud, healthcare fraud, securities or banking fraud, defense contractor fraud, customs fraud, or other illegal activities against the government, come forward today to speak with Tycko & Zavareei LLP. Our law firm can help you take the first steps towards filing a whistleblower lawsuit, saving taxpayer money, and possibly recouping a financial reward for your forthrightness. Our contact form is a confidential way to see how we can help today.
