While there are many pressures that might make it difficult to decide to become a whistleblower in cases of fraud or corruption, New Jerseyans know when to step up and do the right thing. New Jersey is home to one of the strongest whistleblower protection policies in the U.S. The state is no stranger to qui tam law, which offers an opportunity for the average citizen to receive a portion of what the government recoups in a fraud lawsuit.
If you have knowledge of fraud or wrongdoing, you may be able to become a whistleblower. Whistleblowers are protected from retaliation by both federal and state law in New Jersey. Speaking to an experienced New Jersey whistleblower attorney can help you understand your rights and the steps that lay ahead. Schedule a free and confidential consultation today.
Filing a Qui Tam Lawsuit in New Jersey
Qui tam law is not an area with which the average person is often familiar. As an experienced whistleblower law firm, Tycko & Zavareei LLP can help answer any questions you may have about your specific situation and how the law applies.
In general, a qui tam lawsuit can be filed by any person who becomes aware of an attempt to defraud the government. According to the most recent settlements and judgments from the U.S. Justice Department, the majority of qui tam cases filed on average are related to healthcare. Attempts to misappropriate Medicaid, Medicare, or Veterans Affairs funds or file false insurance claims are common ways that companies may attempt to draw down more than their fair share of public funds.
New Jersey False Claims Act
Federally, qui tam law falls under the jurisdiction of the False Claims Act. The False Claims Act was first enacted in 1863 by President Lincoln. The law was later amended in 1943 and again in 1986. It was further strengthened by 2009 and 2010 amendments. It is considered to be the most effective anti-fraud law in the United States.
Under the False Claims Act, violators can be held liable for up to three times the dollar amount that they initially defrauded from the government. This financial penalty is in addition to other civil penalties for each false claim made. The whistleblower under the False Claims Act is known as the relator. They bring the suit on behalf of the plaintiff: the government.
The New Jersey False Claims Act (NJFCA) is similar to the federal False Claims Act in that it penalizes individuals and companies who submit false claims to the state and rewards the whistleblowers who help shed light on the fraud. Like its federal counterpart, New Jersey whistleblowers may receive between 15 to 30 percent of successfully recovered funds under the NJFCA.
Conscientious Employee Protection Act (CEPA)
In New Jersey, whistleblowers are also protected against retaliation by state law. The Conscientious Employee Protection Act (CEPA) prohibits an employer from retaliating against any employee who discloses an activity, policy, or practice that the employee reasonably believes is in violation of the law.
2021 New Jersey Qui Tam Settlements and Judgements
In 2021, the Justice Department’s settlements and judgments collected under the False Claims Act exceeded $5.6 billion. This amount, recouped by civil actions largely brought by whistleblowers, was the second-largest annual total in the history of collections under the False Claims Act. Of this amount, the largest financial settlements largely came from the healthcare industry, including drug and medical device manufacturers, hospitals, laboratories, pharmacies, and more. Of these massive recoupments, whistleblowers were responsible for bringing 598 of total 2021 qui tam lawsuits.
At the state level, New Jersey resolved multiple multimillion-dollar whistleblower lawsuits in 2021. One whistleblower helped uncover a fraud scheme operated by three pharmaceutical sales representatives and one public school guidance counselor. The group allegedly recruited New Jersey state employees to obtain medically unnecessary pharmaceuticals that were then paid for by the NJ State Health Benefits Program. The state recovered $5.2 million.
The state settled another lawsuit against Academy Bus, LLC for $25 million. Over a six-year period, the bus company allegedly underreported missed bus trips and overbilled the state for miles and time in which buses did not run. The whistleblower received nearly $4 million for their help in uncovering the scam.
Common Whistleblower Scenarios in New Jersey
Becoming a whistleblower can help fight fraud and corruption, save taxpayer money, deter future wrongdoing, as well as bring the person who comes forward a percentage of the overall financial settlement. However, it can sometimes be difficult to know what kind of action qualifies as wrong-doing that might allow you to file a qui tam lawsuit. Especially in the field of healthcare, with its complicated insurance claims and filings, it often takes an insider, like an experienced employee, to be able to know what kinds of actions are fraudulent.
Some common examples of qui tam lawsuits may include, but are not limited to:
Healthcare Fraud
A healthcare facility that double-bills a government health insurance program, such as Medicaid, and another insurer or client for their services, over-bills, or prescribes medically unnecessary treatments in order to run up costs may be found guilty in a qui tam lawsuit. Kickbacks are another common kind of healthcare fraud, where a medical provider may receive financial incentives and gifts from a drug manufacturer, a laboratory, or another medical professional which influences what they prescribe to their patients. Fraud in the healthcare industry may be particularly unethical, as it can influence the medical options proffered to vulnerable patients and populations.
Defense Contractor Fraud
A defense contractor who submits a fraudulent estimate or who uses substandard materials in order to cut corners may be committing fraud against the government.
Financial Settlements for Whistleblowers in New Jersey
In general, a whistleblower can recoup up to 30% of financial settlements in qui tam cases. In cases of extensive insurance fraud, large defense contracts, or other high-stakes scenarios, these financial awards can reach into the millions.
While it is impossible to know how much the government will be able to recover until a case settles, an experienced whistleblower attorney can advise you on the amount of financial compensation potentially on the line in your qui tam case.
Contact a New Jersey Whistleblower Attorney Today
If you have any concerns about your employer’s practices or other questions about filing a qui tam lawsuit, you may benefit from a free consultation with the experienced New Jersey whistleblower attorneys at Tycko & Zavareei LLP. Contact us online for a confidential legal consultation and find out how we can help.
