{"id":3129,"date":"2023-04-20T03:40:58","date_gmt":"2023-04-20T03:40:58","guid":{"rendered":"https:\/\/nixlaw.com\/?post_type=news&#038;p=3129"},"modified":"2025-08-13T07:50:42","modified_gmt":"2025-08-13T07:50:42","slug":"what-is-the-false-claims-act","status":"publish","type":"news","link":"https:\/\/nixlaw.com\/es\/practice-areas\/whistleblower-and-false-claims-act-litigation\/what-is-the-false-claims-act\/","title":{"rendered":"What Is the False Claims Act?"},"content":{"rendered":"\n<p>Imagine you\u2019re at work and discover that your employer may be defrauding the government of millions of dollars. What should you do? Fortunately, Congress enacted the False Claims Act (FCA) to deal with this scenario. Several states have followed suit and enacted their own false claims act, which resembles the federal FCA in many ways.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/whistleblower-and-false-claims-act-litigation\/what-is-the-false-claims-act\/#What_Is_the_False_Claims_Act\" >What Is the False Claims Act?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/whistleblower-and-false-claims-act-litigation\/what-is-the-false-claims-act\/#What_May_Qualify_as_a_False_Claims_Act_Case\" >What May Qualify as a False Claims Act Case?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/whistleblower-and-false-claims-act-litigation\/what-is-the-false-claims-act\/#What_Is_a_False_Claim\" >What Is a False Claim?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/whistleblower-and-false-claims-act-litigation\/what-is-the-false-claims-act\/#What_Is_a_Relator_or_Whistleblower\" >What Is a Relator or Whistleblower?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/whistleblower-and-false-claims-act-litigation\/what-is-the-false-claims-act\/#Who_Can_File_a_False_Claims_Act_Lawsuit\" >Who Can File a False Claims Act Lawsuit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/whistleblower-and-false-claims-act-litigation\/what-is-the-false-claims-act\/#How_the_False_Claims_Act_Works_for_Whistleblowers\" >How the False Claims Act Works for Whistleblowers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/whistleblower-and-false-claims-act-litigation\/what-is-the-false-claims-act\/#Can_I_Remain_Anonymous\" >Can I Remain Anonymous?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/nixlaw.com\/es\/practice-areas\/whistleblower-and-false-claims-act-litigation\/what-is-the-false-claims-act\/#Contact_Nix_Pattersons_FCA_Attorneys_Today\" >Contact Nix Patterson\u2019s FCA Attorneys Today<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<p>The FCA is the U.S. government\u2019s major weapon in fighting fraud. It allows a whistleblower \u2014 also called a \u201cRelator\u201d \u2014 who discovers fraud to file suit against those individuals or entities who are stealing from the government. If the claim is successful, the government may recover the fraudulently-obtained funds and the whistleblower may receive compensation in the form of a percentage of the recovery.<\/p>\n\n\n\n<p>If you think a company is committing fraud against the federal government, it is essential to have a False Claims Act attorney help you file a whistleblower lawsuit. The FCA attorneys at Nix Patterson can evaluate your case at no cost today.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_the_False_Claims_Act\"><\/span><a><\/a>What Is the False Claims Act?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The False Claims Act is also called Lincoln\u2019s Law because it was passed during the Civil War to fight fraud by contractors who provided goods to the U.S. military. In recent years, the FCA has been updated to improve the federal government\u2019s ability to claw back money it lost from fraud.<\/p>\n\n\n\n<p>A vital part of the FCA is the <em>qui tam<\/em> provision where someone aware of the fraud against the federal government can file a sealed lawsuit on behalf of the U.S. government. If the case succeeds, the whistleblower can share in the funds the government recovers \u2014 usually 15% to 25% of that amount. In addition, the whistleblower also may recover legal fees and costs from the company that engaged in fraud.<\/p>\n\n\n\n<p>Congress passed monetary incentives and regulations protecting whistleblowers from retaliation in hopes of encouraging citizens to step forward and fight government fraud. The False Claims Act has been remarkably successful over the years; in 2022, <a href=\"https:\/\/www.justice.gov\/opa\/pr\/false-claims-act-settlements-and-judgments-exceed-2-billion-fiscal-year-2022\" target=\"_blank\" rel=\"noreferrer noopener\">False Claim Act settlements from whistleblower lawsuits totaled $2 billion<\/a>. Since 1986, at least $72 billion has been recovered in FCA lawsuits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_May_Qualify_as_a_False_Claims_Act_Case\"><\/span><a><\/a>What May Qualify as a False Claims Act Case?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Many types of fraud can cost the government tremendous money if whistleblowers don\u2019t stop it. If you believe a company is engaging in any of the following illegal actions, talk to a <a href=\"https:\/\/nixlaw.com\/practice-areas\/whistleblower-and-false-claims-act-litigation\/\">False Claims Act attorney<\/a> at Nix Patterson now.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Overbilling the government. If you think a company is charging the government more than it should for goods and services, consider filing an FCA or <em>qui tam<\/em> lawsuit with your attorney\u2019s help. Some companies may charge for goods or services but do not provide them.<\/li>\n\n\n\n<li>Overcharging for prescriptions. Some pharmacists engage in padding, which means marking up prices and not telling anyone. This also may involve not properly testing drugs or lying about drug quality.<\/li>\n\n\n\n<li>Defrauding Medicaid. These cases often involve providing false information to obtain medical care and services.<\/li>\n\n\n\n<li>Defrauding Medicare. This usually happens when medical providers deceive Medicare into receiving unauthorized payments or even get payments above approved amounts. For instance, a doctor may bill the program for a CT scan when they only did an X-ray.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_a_False_Claim\"><\/span><a><\/a>What Is a False Claim?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The False Claims Act targets fraud in the form of false or fraudulent claims to the government for reimbursement. Government contractors \u2014 from physicians to treat Medicare insureds to manufacturers who produce supplies for the Department of Defense \u2014 provide goods or services to the government and then seek reimbursement pursuant to applicable agreements, laws, regulations, and rules.<\/p>\n\n\n\n<p>A false claim is one that seeks reimbursement for goods or services that were not as described. In the healthcare setting, this may be an injection that was never performed or an injection with ultrasonic guidance where the guidance was not used. The fraudster bills the government for the service despite the fact that the government doesn\u2019t actually owe the fraudster for the service, as billed.<\/p>\n\n\n\n<p>False claims also arise when the fraudster\u2019s violation of another law, regulation, or rule taints the provision of services and the resultant claim to the government. Most commonly, this arises in cases where physicians provide services to Medicaid or Medicare insureds while taking part in an illegal kickback relationship; even if the physician performed the services properly, the physician cannot bill the government for the services if they were referred pursuant to an illegal kickback relationship<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_a_Relator_or_Whistleblower\"><\/span><a><\/a>What Is a Relator or Whistleblower?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A whistleblower is someone who discovers wrongdoing \u2014 usually fraud \u2014 and brings that wrongdoing to public light. In many instances, federal or state law provides protection to whistleblowers, including protection from retaliation for blowing the whistle. These protections are complicated, so whistleblowers usually need legal representation by competent attorneys experienced in whistleblower law.<\/p>\n\n\n\n<p>There are several whistleblower laws that prescribe ways in which private citizens can report fraud to the government. In many instances, these laws repay private citizens who report government fraud with a portion of the funds recovered.<\/p>\n\n\n\n<p>Commonly, whistleblowers uncover fraud in federal\/state programs like Medicare and Medicaid, housing, small business development loans, as well as federal defense contracting.<\/p>\n\n\n\n<p>Under the False Claims Act, Relators provide key knowledge, evidence, and other information and file the case, despite the fact that the United States and certain states remain the true plaintiff in the action.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Can_File_a_False_Claims_Act_Lawsuit\"><\/span><a><\/a>Who Can File a False Claims Act Lawsuit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A <em>qui tam<\/em> Relator must possess direct knowledge of the fraud that is allegedly occurring. This means you cannot file a whistleblower lawsuit based on information available to the public or in the press.<\/p>\n\n\n\n<p>In many <em>qui tam<\/em> cases, company employees alleged to have engaged in fraud come forward and file the lawsuit. But contractors and competitors also may possess vital information about fraud.<\/p>\n\n\n\n<p>Whistleblowers file the case for the U.S. government, but attorneys handle the legal work. The attorneys involved share the <em>qui tam<\/em> Relator title if they file suit on behalf of their client.<\/p>\n\n\n\n<p>The <a href=\"https:\/\/content.next.westlaw.com\/practical-law\/document\/I772b2635534011eaadfea82903531a62\/qui-tam-relator?viewType=FullText&amp;originationContext=document&amp;transitionType=DocumentItem&amp;ppcid=8947a3d0536c4c7ba64158503a3cb9d5&amp;contextData=(sc.DocLink)&amp;firstPage=true\" target=\"_blank\" rel=\"noreferrer noopener\"><em>qui tam<\/em> Relator<\/a> provides documents to their attorneys supporting the fraud allegations. There must be specific details of fraud committed against the US government. Most False Claims Act cases involve one or more of these violations:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Knowingly presenting a false claim to the government for approval or payment<\/li>\n\n\n\n<li>Knowingly creating fraudulent statements or records to support a fraudulent claim to the government<\/li>\n\n\n\n<li>Knowingly avoiding payment to the government what it is owed<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_the_False_Claims_Act_Works_for_Whistleblowers\"><\/span><a><\/a>How the False Claims Act Works for Whistleblowers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Filing a whistleblower lawsuit can be intimidating, but the U.S. government offers incentives and protections. For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A successful whistleblower case can result in 15 to 25% of the government\u2019s recovery to the <em>qui tam<\/em> Relator<\/li>\n\n\n\n<li>Entities and firms that defraud the government may have to pay treble damages and fines<\/li>\n\n\n\n<li>Whistleblowers are shielded from company retaliation for filing an FCA claim. People who investigate the claim and testify also receive protection<\/li>\n\n\n\n<li>You may be eligible for reinstatement, double back pay, interest, attorney\u2019s fees, and more if there is company retaliation&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_I_Remain_Anonymous\"><\/span><a><\/a>Can I Remain Anonymous?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>FCA cases are filed \u201cunder seal,\u201d which means they are kept in strict confidence. The case remains under seal during the pendency of the government\u2019s investigation. So, while the case remains under seal, the identity of a whistleblower should remain a secret. If the government chooses to intervene in the case, the whistleblower may very likely remain anonymous.<\/p>\n\n\n\n<p>However, once the case is unsealed, the protection of the whistleblower\u2019s identity becomes much more challenging. And, if the government declines to intervene in the case, a Relator who chooses to proceed with litigation may find it challenging to maintain anonymity. While attorneys can use \u201cDoe\u201d filings and file lawsuits under disguised names, defendants often challenge the validity of this practice.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Contact_Nix_Pattersons_FCA_Attorneys_Today\"><\/span><a><\/a>Contact Nix Patterson\u2019s FCA Attorneys Today<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Do you suspect your employer is defrauding the US government? You could have a False Claims Act case that may result in substantial compensation for you, and you also are protected from employer retaliation. <\/p>\n\n\n\n<p>A qualified attorney can determine the strength of the case and help you file your whistleblower lawsuit. <a href=\"https:\/\/nixlaw.com\/contact\/\">Contact Nix Patterson<\/a> today to discuss your potential FCA case or any other <a href=\"https:\/\/nixlaw.com\/practice-areas\/complex-commercial-and-business-litigation\/\">complex litigation issues<\/a>.<\/p>\n","protected":false},"featured_media":3130,"parent":0,"menu_order":0,"template":"","meta":{"_acf_changed":false},"categories":[67],"tags":[],"news_attorney_categories":[],"news_categories":[],"news_practice_areas":[313],"news_years":[],"class_list":["post-3129","news","type-news","status-publish","has-post-thumbnail","hentry","category-featured-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is the False Claims Act | Nix Patterson LLP<\/title>\n<meta name=\"description\" content=\"Do you suspect your employer is stealing from the U.S. government? 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