False Claims Act Attorneys

Federal False Claims Act (FCA) and the New York False Claims Act (NYFCA)

In common parlance, a “whistleblower” is an employee who reports wrongdoing by his employer. Both the federal government and many state governments have enacted legislation that is designed to prevent an employer from retaliating against an employee (by dismissal, demotion, etc.) for “blowing the whistle” on inappropriate behavior by his employer.

The definition of “whistleblower” is somewhat broader under the Federal False Claims Act (FCA) and the New York False Claims Act (NYFCA). For the purposes of these acts, a whistleblower is a party who exposes fraud against the government in which an individual or a company obtains or withholds funds or property from the government through fraud. Private government contractors are typical defendants.

The Federal False Claims Act

The Federal False Claims Act allows anyone to file a lawsuit against either an individual or a company that defrauds the government out of money or property. Federal FCA lawsuits must be filed in a Federal District Court rather than a New York State Court (the United States District Court for the Northern District of New York, for example), and the Federal Rules of Civil Procedure apply.

A private citizen must file a “qui tam” lawsuit and comply with strict and complex procedural requirements. The incentive to do so arises from the fact that the citizen is entitled to keep a certain percentage of any funds that the government wins in such a lawsuit. If the case is strong, it is likely that the Department of Justice will take over the lawsuit at some point.

The New York False Claims Act

The New York False Claims Act (NYFCA) is a state version of the federal FCA that applies to fraud against the New York state government as well as the various local governments. Private citizens may also file claims under the NYFCA, and the New York Attorney General may take over the case.