Understanding the False Claims Act

If you are an employee who discovers a fraud against New York State, New York City, New Jersey, or the United States government — such as overcharging or stealing from the government — you may be eligible for compensation for coming forward with that information.

Under the Federal False Claims Act and the New York State, New York City and New Jersey False Claims Acts, whistleblowers who have information about a company that has defrauded the state or federal government can file a special type of lawsuit on behalf of the government.  This is known as a "Qui Tam action."

What Kinds of Fraud Falls Under the False Claims Act?

If the company is found to have defrauded the state or federal government, then the whistleblower employee may be entitled to receive a portion of the damages the government collects as a result. Specific examples of acts of fraud against the government may include:

• Overbilling the government
• Violating a contract with the government
• Stealing from the government
• Medicaid or Medicare fraud
• Knowingly selling a defective product to the government
• Virtually any other kind of fraud against the government

If you have information about a company that has committed fraud against the New York, New Jersey, or the United States government, then talk to an attorney who can explain how a Qui Tam action works. If the government receives a substantial monetary judgment against the company or business, you could be eligible to receive a portion of that sum.

Whistleblower Protection

The False Claims Act protects individuals from retaliation when they bring claims under the False Claims Act or assist with those claims.  In addition, many other state and federal laws, like the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform Act, and the New Jersey Conscientious Employee Protection Act ("CEPA") protect whistleblowers against other forms of retaliation. Please visit our Retaliation and Whistleblower page for more information about retaliation claims.