Jenner & Block

False Claims/Qui Tam

Under recent amendments to the False Claims Act that broaden it considerably, nearly every company in nearly every regulated industry likely will face allegations that it submitted false claims or made false statements to the United States government.  The statutory bounty for whistleblowers—who are usually disgruntled former or current employees, consultants, or independent contractors—of up to 30% of the government’s “damages,” abetted by contingent fee and statutory attorney fee recoveries by the plaintiffs’ bar, has lead to an ever-increasing number of these cases.  These circumstances, coupled with the treble damages provisions, statutory penalties of up to $11,000 per claim, and the risk of suspension or debarment if a company is found liable, mean that companies must take all of these cases very seriously.  We do.