Web sites abound advising employees they can make “millions” by blowing the whistle on their employers for alleged violations of laws, rules, or regulations. The federal law known as the False Claims Act (FCA) also contains antiretaliation provisions prohibiting employers from discriminating against employees who make such claims. Continue reading this entry
Under the False Claims Act, a private whistleblower can bring suit on behalf of the federal government to recover funds fraudulently obtained from the government. See 31 U.S.C. § 3730. It is not uncommon for the whistleblower, who can keep up to 30 percent of the government’s total recovery, to be an employee of the defendant. Often, depending on how far along an investigation or lawsuit is, because lawsuits brought under the False Claims Act are initially filed under seal, the company may not even know the identity of the whistleblower for some time. Recently, a wide spectrum of companies — from manufacturing and construction to health care and banking have found themselves grappling with these issues, as they are confronted for the first time with False Claims Act investigations or lawsuits, in many instances instigated by their own employees.