There are many important aspects
of filing a potential claim under the False
Claims Act.
First, be careful to only discuss your
information with an attorney who can assist
you in evaluating the merit of your potential
claim. Disclosure of the details of your
potential claim to the media or other individuals
prior to filing suit may prohibit you from
sharing in any recovery.
Being the first to file a potential claim
is vital. The timing of a lawsuit is critical.
The first person to file a case under the
False Claims Act for a particular fraud
virtually preempts all other cases. If you
plan to bring a case, it is important to
do so before another whistleblower beats
you to the courthouse. Potential whistleblowers
also should keep in mind that the False
Claims Act has a statute of limitations
that may be as short as six years.
The lawsuit in federal court will be filed
"under seal," meaning it is not
available to the public and cannot be discussed
with anyone except the Government officials
investigating the case. Even the defendants
-- the individual or organization charged
with committing fraud -- are not initially
told about the lawsuit. This gives the Government
time to investigate the fraud allegations
without alerting the defendant. The Government
has 60 days to review the case and decide
whether it looks like one that is worthwhile
to pursue. In reality, seals on Qui Tam
cases are routinely extended for one or
two years.
If the Government decides to intervene
in the case, the lawsuit is unsealed, a
copy is served on the defendant, and the
Government, relator and the relator’s
attorneys work together in the case as co-plaintiffs.
If the Government declines to intervene,
the relator may still go forward with the
lawsuit. But the chances of a lawsuit succeeding
are much greater with the Government’s
participation.
