Getnick Law is a national leader in representing whistleblowers under the federal and state False Claims Acts. These are the nation’s key laws protecting against the fraudulent use of public funds.
Getnick Law has been at the forefront of False Claims Act litigation, education, and advocacy for three decades. We have represented whistleblowers in groundbreaking cases, including a $750 million global recovery in a case against GlaxoSmithKline for manufacturing and selling adulterated drugs to government health plans that resulted in the then-largest award to a single whistleblower for our client. In addition, we achieved a $257 million global recovery in the first major national Medicaid fraud settlement under the False Claims Act and obtained a 24% award for our client.
Our lawyers regularly speak about the False Claims Act on panels organized by professional bar associations, public interest organizations, and universities, and are well-known and respected by government lawyers charged with investigating False Claims Act cases. We actively promote whistleblower interests and played a leading role in the enactment of the New York False Claims Act. We have a track record of success in New York False Claims Act cases including a $70M recovery against a major hedge fund and related entities for tax fraud.
The federal False Claims Act (“FCA”) rewards whistleblowers for helping the government recover public money that has been lost to fraud. Under what is known as its “qui tam” provision, the FCA permits whistleblowers — called “relators” — to bring suit on behalf of the government and receive up to 30% of the government’s recovery.
Most state governments, and some localities, have passed False Claims Acts of their own. Many are substantially the same as the federal statute, although there are variations in the laws. Read the text of state and local false claims whistleblower laws here.
The federal FCA and its state counterparts can be used to combat all kinds of fraud on government spending programs. This includes, but is not limited to, fraud on Medicare, Medicaid, and other government health plans; housing and mortgage programs; educational programs and institutions; construction, road, and railway projects; military and defense spending; and all types of government grants and contracts. The FCAs in New York and some other states also cover tax fraud. The FCA provides for the recovery of three times the actual damages plus penalties of up to $27,000 per violation.
The False Claims Act has been a highly effective tool in fighting fraud. The Department of Justice (“DOJ”) has called the FCA the “single most important tool U.S. taxpayers have to recover funds lost due to fraud against the government.” DOJ has also noted that “whistleblowers have played a vital role in unmasking fraudulent schemes that might otherwise evade detection.” As of the end of 2022, DOJ had recovered more than $72 billion under the FCA since its 1986 modernization. In Fiscal Year 2022 alone, DOJ reported settlements and judgments exceeding $2 billion from qui tam suits filed by whistleblowers.
In a case under the FCA, a whistleblower or “relator” files a complaint in court under seal, describing in detail the allegations and circumstances of the alleged fraud. This means the complaint is confidential unless and until the court orders that it be unsealed. While the complaint is under seal, the government investigates the whistleblower’s claims and determines whether to “intervene” in — or join — the case. If the government intervenes in the whistleblower’s case, the government takes over the litigation, and the whistleblower is eligible for 15-25% of any amount recovered, including damages and/or penalties. If the government does not intervene, the whistleblower may nonetheless continue the lawsuit on behalf of the government and is eligible for 25-30% of any amount recovered, including damages or penalties.
To learn more about the FCA, read our FAQ page here.
If you think you may have information relating to fraud against the government, fill out our contact form or call us at (212) 376-5666 for a free evaluation of your potential case. We represent our whistleblower clients on a contingent fee basis, meaning that an attorney’s fee is paid only if your case is successful.
