Whistleblower, Qui Tam, and False Claims Act

Whistleblower laws encourage the disclosure of information identifying fraud and illegal actions that undermine the fair and efficient functioning of the federal and/or state government(s) and the economy. Our team has extensive experience representing whistleblowers in countless industries under a variety of statutory regimes, including the False Claims Act (FCA), state and local false claims acts, the SEC whistleblower program, Internal Revenue Service whistleblower program, and Foreign Corrupt Practices Act (FCPA).

The FCA is designed to root out and redress fraud against the federal government (and consequently taxpayers). The “qui tam” provisions of the FCA enables whistleblowers (referred to as “relators”) to report fraud and other illegal actions to protect the use of taxpayer money. To encourage their bravery and diligence, relators are entitled to a percentage of the government’s financial recovery, ranging between 15% and 30%, depending upon the circumstances in securing a resolution of the matter.

The FCA covers a broad array of federally funded agencies and programs, including Medicare, Medicaid, defense and other government contracts, mortgage and housing programs, disaster assistance loans, etc. In 2020, the Department of Justice recovered more than $2.2 billion in settlements and judgments from civil cases alleging the submission of various fraudulent claims submitted to the government. In addition to protecting taxpayers, the FCA also serves to shield patients from fraudulent practices related to a host of issues, including pharmaceuticals and medical procedures. Sound public policy demands the protection and encouragement of anyone brave enough to report fraud and other behavior that can result in damages to taxpayer generated funds and public trust in government. 

Similar to the FCA qui tam provisions are the whistleblower laws that provide for similar incentives, recoveries and protection for persons identifying fraud and other misconduct in securities (not limited to publicly-listed securities), tax reporting, money laundering, and bribery of foreign officials.

The SEC’s securities whistleblower program extends to a wide variety of areas, including protecting investors in capital markets, who rely upon the full and accurate financial and cybersecurity disclosures to make prudent investments. 

In this regard, we have represented numerous individuals and groups who have spoken out about fraudulent practices. Through our vigorous advocacy, which includes the use of analytics, comprehensive investigations and extensive legal analysis, we have successful worked with the government in litigating significant FCA claims. With notable success on behalf of our clients, we also have pursued private litigation across a wide swath of industries, including residential mortgage-backed securities, life sciences and medical devices, industrial manufacturing, and government procurement. We protect whistleblowers around the country from discrimination, retribution and retaliation, and helping them to secure compensation for their role in critical government investigations.

DiCello Levitt distinguishes itself from other qui tam practitioners by its expansive subject matter expertise across a range of industries and regulatory regimes. Notably, our lawyers bring a wealth of knowledge from their vast experience as prosecutors at the Department of Justice and other government agencies, as well as their prior work in private practice. They are recognized and greatly respected by their peers for being fair, honest and meticulous. Their network of relationships with other members of the qui tam bar, as well as Assistant U.S. Attorneys across the country, enables them to quickly and efficiently move matters towards a successful resolution that provides significant benefits to our whistleblower clients, as well as the federal and state agencies and programs that are clients seek to protect.  

Representative Matters

• State of Illinois, ex rel. Kenny Gilman v. Fieldturf USA, Inc.

Obtained a substantial settlement on behalf of whistleblowers in a qui tam action over defective athletic fields sold and installed in Illinois.