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False Claims Act Whistleblowers Protected Even Without a Successful Qui Tam Lawsuit

The False Claims Act contains a newly broadened anti-retaliation provision that protects whistleblowers who take actions in furtherance of a Qui Tam action, or in an attempt to stop one or more violations of the False Claims Act. This essentially means that employees and others are protected when they collect information in preparation for a Qui Tam lawsuit as a relator, and when they internally blow-the-whistle on what they reasonably believe to be violations of the FCA. Importantly, courts have clarified that generally whistleblowers need not be correct in their reasonable belief, in order to be protected from retaliation.

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Federal False Claims Act Basics

Enacted during the Civil War by President Abraham Lincoln and strengthened in 1986, 2009, and 2010, the Federal False Claims Act (FCA) bestows liability on anyone who makes, causes, or conspires to make a false or fraudulent claim to the United States government, including situations in which a person falsely certifies compliance with a condition of payment or recklessly ignores the falsity of claim. Fines under the FCA can range from $5000- $10,000 (adjusted for inflation) in addition to 3 times the amount of damages that the government sustains due to the false claim. The defendant will also be liable for any costs of litigation incurred to recover these damages. The general statute of limitations is 6 years from the date of violation.

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