The U.S. False Claims Act authorizes whistleblowers of any citizenship to sue to recover funding for a defrauded U.S. government agency or department. These complaints are originally filed confidentially but may later become public. A whistleblower can qualify for a share in the eventual recovery of up to 30% of the returned funds. The promise of such recoveries enables law firms like this one to advance the cost of our whistleblower representation and advice so that whistleblowers pay nothing unless and until their case progresses to a financial recovery.
There are many kinds of False Claims Act lawsuits. When the law was passed, the U.S. Congress sought to address the problem of unsavory military contractors selling the army defective products, such as guns that did not shoot or boots made of cardboard. Today, many U.S. government agencies are doing equally important work based on the integrity of the products, services and research they pay for. While some contractors cheat the government by billing for no work at all, it is more common to appear to be fulfilling obligations while taking unlawful shortcuts. Examples include mental health services provided by unlicensed therapists, drugs prescribed by bribed doctors, medical procedures that are unnecessary or unsafe, and technological services or products that do not work as advertised. In science, funding agencies sometimes award or continue to pay out on grants, based on scientists making misrepresentations of the science or of other circumstances to the research: in that case, payments after the date of the misrepresentation count as having been obtained fraudulently. One important focus at my firm is to use the False Claims Act to address fraud in the scientific or medical literature that misleads federal agencies into awarding grants or other benefits for work that they might not otherwise choose to fund.
It is important to understand what is needed to prove a false or fraudulent claim. Unlike in criminal fraud cases, it is not necessary for a whistleblower or the government in a False Claims Act case to be able to show that the defendant’s misrepresentation was intentional. A false or fraudulent claim can be reckless, deliberately ignorant, or knowing (meaning that the defendant should have known or in fact knew, that they were saying something untrue). In addition, omitting or hiding relevant information can make a statement fraudulent. In June 2016, the U.S. Supreme Court unanimously concluded that misleading half-truths can count as actionable false claims in United States ex rel. Escobar v. Universal Health Services, Inc.. This case defines the contours of civil fraud in the United States today.
Other scientific, medical or technological frauds fit the Escobar template. The government’s decision to make a payment is compromised by its reliance on incomplete and misleading information, kickbacks, or other fraudulent conduct. If you are dealing with a fraud of this type and want advice about whether you have a case, or what your other options may be, please feel free to book a free, confidential consultation at the link below.