Qui tam lawsuits allow private citizens to file lawsuits on behalf of the government against companies and individuals who may have committed fraud against government programs. The rewards for whistleblowers in these cases can be substantial, providing both compensation for the government and whistleblower as well as serving as a deterrent against fraud. It is important for potential whistleblowers to have a basic understanding of the factors that determine these rewards when deciding whether to bring forward a claim.
Factors influencing rewards in qui tam lawsuits
The rewards from qui tam lawsuits can vary greatly depending on several factors. These factors not only influence the potential amount awarded but also the overall success of the case. Two key factors include:
- Extent of the whistleblower’s information: The originality and usefulness of the information provided by the whistleblower will likely impact their award.
- Participation in the fraud: The less involved the whistleblower is in the violation, the higher the potential reward.
Rewards can extend beyond a portion of the settlement for filing the claim. The court may also award the whistleblower with additional funds known as special damages. These can include funds to help cover back pay and reasonable attorneys’ fees.
Key considerations for whistleblowers
Whistleblowers should weigh several considerations before proceeding with a qui tam lawsuit. First, it is a good idea to review the factors noted above. Next, it is helpful to get comfortable with the laws that guide these claims. One important example involves federal and state laws against retaliation. These make it illegal for employers to take negative action against an employee in response to a whistleblower claim. It is important to understand these protections to better ensure you recognize any potential violation.
Qui tam lawsuits serve as a powerful tool for combating government fraud, offering significant rewards to whistleblowers who come forward with helpful information. The determination of these rewards depends on various factors. It is wise for those who are considering this type of claim to seek legal advice to help navigate the complexities and better ensure a favorable outcome.