Although defense contractors and healthcare providers are, to date, the most common Qui Tam defendants, a host of other Government-funded programs exist which are coming under the scrutiny of whistleblowers.

Research Grants
In July 1994, the University of Utah and University of California agreed to pay $950,000 and $165,000 to settle a Qui Tam suit alleging that a researcher reported false and fraudulent research results to the National Institute of Health. The relator alleged that the Universities either knew that the results were false or, by failing to monitor the researcher, were reckless as to the truth of the results.

Environmental Claims
In June 1996, M/G Transport Services, Inc. agreed to pay $4.6 million to settle a Qui Tam suit filed by two of its former employees. The former employees informed the Government that M/G Transport barges dumped oil and sewage into rivers while delivering coal to the Tennessee Valley Authority. M/G Transport failed to report the discharges, as required by its contract and by federal law. The relators earned approximately $1.4 million for uncovering the scheme.

Claims Against Local Governments
In December 1994, the State of New York and several of its state colleges paid $26.97 million to settle a Qui Tam suit dealing with the misuse of federal funds earmarked for training social service employees. The relator, a former state employee, received $4.05 million for his information.

Federal Purchasing
In February 1996, Philips Electronics North America Corporation agreed to pay $1 million to settle a Qui Tam case concerning the sale of office products to the National Labor Relations Board and the Department of the Interior. The Qui Tam relator, a former Philips' employee, explained that Philips had misled the Government by not mentioning its plan to shut down its United States operations. If the Government knew that Philips was planning to abandon its United States operations, it would not have purchased the equipment. The relator received $300,000 of the settlement for uncovering the scheme.

Government Contractors
In May 1995, three contractors building a Treasury Department facility in Fort Worth, Texas agreed to pay $230,000 as a result of a Qui Tam case alleging that the contractors improperly tested electrical cables installed at the facility.

Truth in Negotiations
In January 1995, Rubbermaid agreed to pay $887,000 to settle a Qui Tam action brought by a former salesperson. Rubbermaid failed to inform negotiators from the General Services Administration that its commercial discounts were larger than its Government discounts. The relator received $185,000.

Claims on the Postal Service
In April 1995, a federal district court ruled that the United States Postal Service is protected by the False Claims Act. Therefore, false or fraudulent claims made on the postal service are prohibited by the False Claims Act.

This information is for educational purposes. It is not offered as and does not constitute legal advice or legal opinions. You should not act or rely upon this information without seeking the advice of an attorney.