If a company wants to avoid the stress, time and expense of dealing with a government investigation and potential litigation, the right response to employees concerned with workplace integrity is critical.
The False Claims Act is a unique statute that through its qui tam provisions enables a private citizen known as a “relator” to bring a claim on behalf of the government to recover funds lost through fraud, waste or abuse—money stolen from the government. With the undeniable success of the False Claims Act qui tam provision on behalf of the government, similar programs have proliferated, including whistleblower incentive programs at the IRS, SEC and U.S. Commodity Futures Trading Commission, as well as state FCAs in 29 states and the District of Columbia. At this point, it is a rare industry that does not face scrutiny from potential whistleblowers.
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