Qui tam lawsuits play a crucial role in exposing and combating fraud against the government, and the potential for significant whistleblower rewards serves as a powerful incentive for individuals to come forward.
How is that compensation figured? Here are some basics that can help you understand:
Factors that influence qui tam rewards:
It’s generally agreed that people (relators) who step forward to expose corruption and waste deserve compensation for their efforts. The False Claims Act provides a baseline, with 10% being the minimum and 30% being the maximum percentage. The court determines where within this range the reward falls based on various factors, including:
- Amount recovered: One of the primary determinants of whistleblower rewards in qui tam cases is the amount of money recovered as a result of the lawsuit. Generally, the relator is eligible to receive a percentage of the recovered funds. The higher the financial impact of the fraud, the larger the potential reward.
- Government involvement: The level of the government’s involvement in the case can significantly impact the whistleblower’s compensation. If the government actively participates in the lawsuit and leads the litigation process, the relator’s reward percentage may be lower than if the whistleblower plays a more substantial role in driving the case forward.
- Relator’s contribution: The contribution of the whistleblower to the success of the case is a critical factor. Courts often consider the relator’s role in initiating the lawsuit, and the relator’s level of cooperation and the quality of the information they provide can influence the percentage of the reward.
If you’re contemplating blowing the whistle, legal guidance can be critical. You want to protect your position, your future – and the compensation you are rightfully due.
