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Qui Tam Cases Archives

What is a qui tam action under the federal False Claims Act?

If you work for an organization that contracts with the federal government, you may have observed questionable or even fraudulent activity. Did you know you could earn a substantial reward by blowing the whistle on fraud, waste or abuse of a federal contract or program? The reward could be between 15 and 30 percent of any money recovered on behalf of the government.

Whistleblower reveals hospital's Stark, Anti-Kickback violations

"By bringing allegations of fraud to light, whistleblowers play an important role in protecting the integrity of our healthcare system," says the U.S. Attorney for the Western District of Pennsylvania.

Whistleblower alerts government to systemic, overcharged shipments

The False Claims Act invites private-citizen whistleblowers to file lawsuits against companies that they believe are engaging in fraud, waste or abuse in government contracting. When these lawsuits are successful, the whistleblower can receive a substantial portion of the money recovered as a reward for their service. Sometimes, the federal government intervenes in these lawsuits, which does not affect the whistleblower's rights but sometimes improves the lawsuit's chances for success.

DOJ accuses Navy contractor of lying about radioactivity tests

The Hunters Point Naval Shipyard in San Francisco is being redeveloped into housing and commercial space. Between 1946 and 1969, however, the former Navy shipyard was involved in activities that created significant amounts of radioactive waste. First, the facility was the location of top-secret nuclear tests. Second, it was where ships were decontaminated after returning from hydrogen bomb tests. Cleaning up the radioactive waste is expected to cost at least $1 billion.

SEC awards two whistleblowers a combined $54 million

It has been reported that the Securities and Exchange Commission awarded two major whistleblowing payouts earlier this month. The agency granted one whistleblower $39 million. Another informant received $15 million. The SEC awarded these two for information leading to the discovery of a major violation of SEC rules.

SEC proposes changes to Dodd-Frank whistleblower award amounts

Earlier this summer, the Securities and Exchange Commission issued a proposal that would give it greater discretion when making awards to people who blow the whistle on securities violations under the Dodd-Frank Act. Allowing it to offer larger awards in small cases would foster compliance in the industry, the agency says. It would pay for the increases by cutting into the very large awards paid out in a handful of cases each year.

Insys Therapeutics to pay at least $150 in opioid kickback case

Pharmaceutical manufacturer Insys Therapeutics, Inc., has tentatively agreed to settle allegations by the U.S. Justice Department that it paid kickbacks to doctors in order to get them to prescribe its drug Subsys. The drug is an under-the-tongue spray containing the opioid fentanyl, which is some 100 times stronger than morphine. Subsys was intended to manage pain in cancer patients.

CFTC reports high whistleblower activity, dramatic payouts

Calling it a "transformative year" for its whistleblower program, the Commodity Futures Trading Commission (CFTC) announced recently that it has awarded whistleblowers more than $45 million in rewards for identifying illegal activity. This is a dramatic increase over prior years.

SEC issues $2.2 mln whistleblower award under 'safe harbor' rule

Under the Securities and Exchange Commission's "safe harbor" rule, securities law whistleblowers can receive awards even if they submit their information to another agency, as long as they submit it to the SEC within 120 days. When they do so, the SEC will treat the information as if it had been submitted properly in the first place.

Takata whistleblowers to get $1.7 million from bankruptcy fund

The Motor Vehicle Safety Whistleblower Act may not be completely up to speed, but three former Takata employees will still get their awards. They blew the whistle on the auto parts manufacturer in the largest recall in automotive history. The recall involves faulty air bag inflators installed by 19 automakers into millions of vehicles.

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