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P&J FALSE CLAIMS ACT PRACTICE
As reflected in our attorney profiles,
each of the name partners at Pigott & Johnson is a
veteran of the United States Department of Justice. Brad
Pigott served as the Presidentially-appointed United States
Attorney for the Southern District of Mississippi,
and Cliff Johnson served as the Assistant United States
Attorney responsible for health care fraud enforcement.
Utilizing that unique collective experience, Pigott &
Johnson represents "whistleblowers" throughout
the country who disclose fraud against the Government under
the federal False Claims Act and similar state laws.
The False Claims Act is a federal law
that allows those with "inside" knowledge of fraud
against the Government to disclose that knowledge through
lawsuits filed under seal and to be rewarded with a large
fraction of any money recovered by the Government. The lawyers
at Pigott & Johnson have handled dozens of such suits
on behalf of the United States and private whistleblowers
in cases against hospitals, nursing homes, medical laboratories,
ambulance companies, therapy providers, medical equipment
suppliers, physician groups, medical billing companies,
FEMA contractors, NASA contractors, Department of Defense
contractors, student loan companies, for-profit colleges,
construction companies, and a variety of other entities
that have defrauded the United States.
Having prosecuted False Claims Act cases
on behalf of both the Department of Justice and individuals,
the lawyers at Pigott & Johnson know how the system
works. This experience allows us to provide especially effective
representation for our clients as we guide them through
the complex world of whistleblower litigation
False
Claims Act Recoveries | Frequently
Asked Questions
The False Claims Act
Questions and Answers
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What is the
False Claims Act?
The False Claims Act is a unique federal
law that allows citizens with evidence of fraud against
the Federal Government to sue, on behalf of the Government,
to recover triple the amount that has been defrauded
from the government. As compensation for their efforts,
the citizen, known as the "Relator," can receive
an award, typically between 15 and 30 percent of the
total amounts recovered.
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What does qui tam mean?
The term "qui tam" stands for a longer Latin
phrase [qui tam pro domino rege quam pro se ipso in
hac parte sequiter] that is translated as "he who
brings an action for the king as well as for himself."
Qui tam is the technical legal term for the legal procedure
which allows individuals who have evidence of fraud
to sue the wrongdoer on behalf of the Government.
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What types of conduct
or activities are covered under the Act?
Virtually any situation in which the Federal Government
is dispensing money, or collecting money, can give rise
to a False Claims Act violation. Activities which constitute
a violation of that Act are:
(a) knowingly presenting, or causing to be presented,
to the Federal Government a false or fraudulent claim
for payment;
(b) knowingly using, or causing to be used, a false
record or statement to get a claim paid by the Federal
Government;
(c) conspiring with others to get a false or fraudulent
claim paid by the Federal Government;
(d) knowingly using, or causing to be used, a false
record or statement to conceal, avoid or decrease an
obligation to pay money or transmit money to the Federal
Government.
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How can a private citizen
receive an award under the False Claims Act?
In short, it is only the filing of a qui tam lawsuit
and subsequent settlement or favorable judgment which
can enable a private party to receive a recovery under
the False Claims Act.
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How much money can a
private citizen receive for bringing a qui tam action?
The person who files the suit, known as the "Relator"
can receive between 15 and 30 percent of the total recovery
from the Defendant, whether that recovery comes from
a favorable judgment or a settlement. Relators have
received awards as high as one hundred fifty million
dollars ($150,000,000.00) in a single case. If a person
brings a qui tam action, and the Government chooses
to intervene by taking over the lawsuit, the relator
generally is eligible to receive between 15 and 25 percent
of the recovery. If a person brings a qui tam action
and the Government chooses not to intervene, the relator
and their attorney still can proceed without the Government
to prepare and try the case, and the relator can receive
between 25 and 30 percent of the recovery.
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What
can a company be liable for if it violates the False Claims
Act?
Violators of the False Claims Act are liable for three
(3) times the dollar amount that the Government has
been defrauded of, plus civil penalties of $5,500 to
$11,000 for each false claim submitted.
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Who can be held liable?
Virtually anyone who receives money from the Government,
or pays money to the Government, or helps someone else
get money from the Government, can engage in conduct
which could make them liable for a violation of the
False Claims Act. Common examples of defendants in qui
tam actions, include the following:
Government Contractors and Subcontractors:
Anyone who contracts to provide services or goods
to the Government can be a liable for a vast array of
False Claims Act violations.
Medical Providers: Doctors,
hospitals, nursing homes, medical supply companies, HMOs,
clinics, and other health care providers often are defendants
in qui tam actions for Medicare/Medicaid fraud arising
from a wide range of fraudulent billing practices ranging
from charging for services not performed, to performing
services which were unnecessary, or paying kickbacks to
other providers in order to get more business.
Businesses and Individuals:
Virtually any business or individual doing business with
the Government, selling something to the Government, or
providing services to the Government, or any agency or
branch thereof, can be a defendant in a qui tam action.
Claims can range from charging the Government for defective
products to failing to advise a Government agency that
a seller has been selling goods to the Government agency
at an illegal price, while offering a discount price to
others.
Private Universities: Private
universities and colleges have been charged as defendants
in qui tam actions that involve their handling of federal
grants and research and development money.
Local Government Agencies and
Officials: Because they are recipients of large
amounts of federal money, local entities can be defendants
in qui tam actions.
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Is there a deadline
for filing a qui tam action?
Under the False Claims Act, an action must
be filed within the later of two time periods:
(a) Within six years from the date of the violation
of the Act, or
(b) Within three years after the government learned,
or should have learned, about the violation but in no
event later than ten years after the violation of the
Act.
Please Note - if, before you file, someone else has
filed a False Claims Act lawsuit, or helps publicize
allegations similar to yours, you may lose your right
to bring a qui tam suit.
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How much does it cost
to bring a qui tam action?
If you choose to retain the services of P&J and we agree
to take your case, we will represent you on a contingency
fee basis. This means that you pay no out-of-pocket
legal fees for the time we devote to your case. We get
paid attorneys' fees if, and only if, your claim results
in a monetary award to you.
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How long does a qui
tam action take?
The time from the filing of a qui tam action until its
resolution varies greatly from case to case, and can
range from months to years. Cases which are resolved
more quickly are generally those within which the Relator
has secured all of his or her proof in advance of filing
the lawsuit. This increases the likelihood that the
Government will intervene and take over the case, and
that, in turn, increases the likelihood that the case
with settle sooner rather than later.
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Do I have to report
what I know about the fraud to the Government, or my
employer, before filing a qui tam action?
In general, the False Claims Act does not require you
to report the fraud to your employer before filing a
qui tam action.
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Have I lost my right
to bring a qui tam action if I have already informed
the Government about the fraud?
No. You do not give up your right to bring a qui tam
action by going to the Government before filing your
qui tam lawsuit. You should be aware, however, that
you are barred from bringing a qui tam suit based upon
allegations or transactions which are the subject of
a False Claims Act suit already filed by the Government.
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Can I keep my identity
secret if I file a qui tam action?
When you initially file a qui tam lawsuit, it is filed
"under seal", and the Defendant company remains
unaware of your involvement for some months. During
that period, the Department of Justice reviews the claims
contained within your lawsuit, and decides if it wants
to take over your case. Once that decision is made and
the seal is lifted, however, it is likely your name
will disclosed to the defendant at some point.
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Do I have any protection
against my employer firing me for blowing the whistle
under the False Claims Act?
Yes. Under the False Claims Act, any employee
who is discharged, demoted, harassed or otherwise discriminated
against because of acts of the employee in furtherance
of an action under the False Claims Act is entitled
to receive all relief necessary to make the employee
whole. Such relief may include reinstatement, double
back-pay, or compensation for any special damages including
litigation costs and attorneys fees.
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Does the False Claims
Act cover tax fraud?
No, but another new federal law does allow whistleblowers
to be rewarded for reporting tax frauds. P&J is happy
to talk to you about pursuing an action under this new
law.
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