Whistleblowers sometimes need to risk their job stability to do the right thing. When professionals learn that their employers have engaged in fraudulent billing practices while fulfilling a government contract, they may feel compelled to report the issue.
If it is clear that the company engaged in fraud intentionally rather than by accident, workers may realize that reporting the issue internally is unlikely to resolve the matter. They may choose to act as relators by pursuing a qui tam lawsuit.
Whistleblowers have the option of taking legal action against their employers on behalf of the government. While these lawsuits do not necessarily receive much media attention, they can have a profound economic impact.
The surprising amount recovered from qui tam lawsuits
Qui tam lawsuits initiated by whistleblowers allow the government to hold companies accountable for fraudulent billing. Each lawsuit might only relate to a moderate amount of capital, but when looked at as a whole, qui tam lawsuits help reduce losses related to fraud substantially. In 2024, successful qui tam lawsuits allowed the government to secure judgments to recover $2.9 billion in funds lost to fraudulent billing.
The government also compensates the relators pursuing those lawsuits by awarding them between 15% and 30% of the amount recovered. Professionals worried about how filing a lawsuit might impact their current positions, the company that employs them or their future job opportunities can defray the economic impact of their litigation with that compensation.
The success of a qui tam lawsuit depends on the strength of the evidence and the representation that a professional has. Those preparing to act as whistleblowers can optimize their protection and chances of success by securing appropriate support early in the process.