What is the False Claims Act? 

How Whistleblowers Fight Government Fraud and Get Rewarded 

Imagine uncovering a scheme that robs taxpayers of millions and having the guts to do something about it. Now imagine getting paid for it. That’s exactly what the False Claims Act (FCA) offers: a powerful legal tool for people who decide to stand up to government fraud. 

You might feel nervous. Maybe you're worried about your job or your future. That’s completely understandable. But here’s what you need to know: there are strong legal protections in place, and they’re designed specifically for people like you. The FCA doesn’t just allow you to report wrongdoing, it protects you and rewards you for doing the right thing. 

At Horn Wright, LLP, we’ve helped whistleblowers across New York take that brave first step. Our attorneys are experienced in FCA claims and know exactly how to protect your rights, guide you through each phase, and maximize the reward you’re legally entitled to. 

The False Claims Act Explained: Fighting Fraud Since 1863 

The False Claims Act has deep roots in American history. Originally passed in 1863 during the Civil War, it aimed to stop suppliers from selling defective equipment to the Union Army. Back then, corrupt vendors were sending crates of sawdust instead of gunpowder and charging full price. President Abraham Lincoln pushed for this law, which is why some still call it the "Lincoln Law." 

Over the decades, the FCA has evolved, but its purpose remains crystal clear: to prevent fraud that drains billions from government programs. Today, it’s most commonly used in healthcare, defense contracting, and infrastructure sectors, i.e., areas where fraud can quietly siphon huge sums of taxpayer money. 

What makes the FCA so unique is that it allows everyday people, i.e., whistleblowers, to bring legal action on behalf of the government. If you see something wrong inside a company or organization that receives federal funds, you have the right to act. And if your case succeeds, you don’t just help fix the problem. You share in the recovery. 

How the False Claims Act Rewards Whistleblowers 

Let’s talk numbers, because this part can be life-changing. If you help the government recover funds through a successful FCA case, you could receive 15% to 30% of the total amount recovered. Yes, really. 

The size of your reward depends on several key factors. The more valuable and timely your information is, the better your chances of receiving a higher percentage. If you bring new, detailed evidence to the table or if your testimony helps drive the case forward, that counts in your favor. The government also considers whether you took personal risks, such as facing potential retaliation or job loss, when you stepped forward. 

Here’s how the reward typically breaks down: 

• When the government intervenes in the case, meaning they take over the lawsuit, whistleblowers are eligible to receive 15% to 25% of the total recovery. 
• If the government does not intervene and you pursue the case with your attorney, the reward jumps to 25% to 30%. 

To put this into perspective, if the government recovers $10 million through your case and you receive 20%, that’s $2 million in your pocket. That’s more than a thank you. It’s a financial acknowledgment of your courage and contribution. 

Protection from Retaliation: Your Rights as a Whistleblower 

It’s one thing to know fraud is happening. It’s another to speak out, especially when your job or career could be on the line. That’s why the FCA includes strong anti-retaliation protections. They’re enforceable rights designed to shield you. 

Under the FCA, it’s illegal for your employer to retaliate against you for coming forward. This includes being fired, demoted, harassed, suspended, or even threatened. In fact, retaliation doesn’t have to be dramatic. Even subtle changes in your responsibilities or being left out of meetings could be considered retaliation under the law. 

If your employer does retaliate, you may be entitled to: 

• Reinstatement to your job, with the same seniority. 

• Double back pay, plus interest. 

• Compensation for any special damages, including emotional distress. 

• Attorneys’ fees and court costs. 

These protections aren’t just legal jargon. They exist to ensure that whistleblowers don’t have to choose between doing the right thing and keeping their livelihoods. 

Common Violations Under the False Claims Act 

False Claims Act violations come in many forms. At their core, they all involve deceiving the government to get money, or to avoid paying money owed. And while the specifics vary across industries, the themes are often very similar. 

Let’s break it down. Here are some of the most frequent types of violations that our employment attorneys see: 

• Submitting false or inflated invoices to federal programs. 
• Providing false certifications to qualify for government contracts or funding. 
• Failing to return overpayments or knowingly avoiding financial obligations to the government. 

Here are just a few real-life examples to paint the picture: 

• A hospital billing Medicare for treatments never actually provided. 
• A contractor delivering substandard equipment to a military base while claiming top-grade materials. 
• A tech company overstating labor costs in a Department of Energy project. 

These aren’t just accounting errors, they’re deliberate acts that steal taxpayer dollars and hurt the integrity of government programs. And when whistleblowers step in, the damage can be stopped. 

The Process of Filing a False Claims Act Lawsuit 

Filing an FCA case might seem daunting, but it’s more structured, and more private, than most people realize. The process begins quietly and gives you and your attorney time to build your case before the target even knows it exists. 

Here’s a breakdown of how it typically unfolds: 

1. Confidential Consultation: Your journey starts with a private conversation with a lawyer experienced in FCA cases. Nothing you share gets disclosed without your approval. 

2. Evidence Gathering: You and your attorney will review documentation, emails, financial reports, and other records to back up your claims. The stronger your evidence, the better the chances of success. 

3. Filing Under Seal: Your lawyer files a "qui tam" lawsuit in federal court, and it’s kept under seal (meaning the defendant isn’t notified) for at least 60 days. This gives the government time to investigate. 

4. Government Investigation: During this sealed period, federal agencies assess the claim. They may request additional information or interview witnesses. This part often takes longer than 60 days. 

5. Government Decision: 

1. If the government intervenes, they take over the case with you as a partner. 

2. If they decline, you and your lawyer can still move forward independently. 

6. Litigation or Settlement: The case might settle early if the evidence is strong, or it may go to trial. Either way, your role continues throughout. 

7. Recovery and Reward: If the case succeeds, the court determines the total recovery and your share. The financial reward comes at the end—but it can be worth the wait. 

First-to-File Rule: Timing is Everything 

One of the most important aspects of the FCA is its “first-to-file” rule. It’s exactly what it sounds like, the first whistleblower to file a claim about a particular fraud gets the reward. Period. 

That means even if you have solid proof of wrongdoing, you won’t qualify for compensation if someone else files first. This rule exists to encourage swift action and prevent duplicate lawsuits. 

If you suspect fraud, waiting too long can shut the door completely. It can make or break your case. 

What You Can Expect: How Long Do False Claims Cases Take? 

Let’s set expectations: False Claims Act cases take time. Many stretch out over several years. That might sound overwhelming, but there’s a reason—these are complex cases involving massive amounts of government money, detailed investigations, and legal maneuvering. 

Early settlements are possible, especially when the fraud is obvious and well-documented. But even then, you’re looking at several months, not weeks. If your case moves to full litigation, it could take two to three years or more. 

That said, patience often pays off. And throughout the process, your legal team handles the heavy lifting. You stay informed, protected, and focused on the long-term goal: justice and your rightful reward. 

Success Stories: Real-Life Impact of False Claims Act Cases 

Whistleblowers have played a critical role in protecting public funds. Since 1986, the government has recovered over $75 billion thanks to FCA cases, and over $7.8 billion of that has gone straight into whistleblowers’ pockets. 

These aren’t abstract numbers. They represent real people who made tough choices, stood their ground, and were rewarded for it. 

• One New York nurse helped uncover a fraudulent Medicare billing scheme. Her testimony led to a $150 million settlement, and she received more than $20 million as a reward. 

• A defense contractor’s employee blew the whistle on inflated costs billed to the Pentagon. The result? A $95 million recovery and a whistleblower award of nearly $15 million. 

Their bravery made headlines and made a difference. 

Changes Over the Years: Strengthening Whistleblower Protections 

The FCA hasn’t stayed the same since its Civil War beginnings. Over the years, lawmakers have revised it to make it stronger, clearer, and more favorable to whistleblowers. 

• 1943 changes weakened protections and rewards, making it harder for people to file claims. 

• 1986 reforms reversed course. Congress significantly increased whistleblower incentives and expanded the types of fraud covered. 

• 2009 and 2010 brought more clarity to definitions and extended protection to contractors, subcontractors, and even those who report fraud internally before filing a lawsuit. 

These amendments show a clear trend: the government values whistleblowers and wants to encourage more of them to step forward. 

Common Questions About the False Claims Act 

Here are a few quick answers to questions we often hear: 

• Who can be sued under the FCA? Individuals, corporations, contractors, or anyone defrauding federal programs. 
• How do I stay anonymous? Your case is initially filed under seal, so your identity is protected during the investigation. 
• Do whistleblower rewards get taxed? Yes, they are considered taxable income under federal law. 

Horn Wright, LLP, is Here to Protect You 

Blowing the whistle on fraud isn’t easy. It takes guts, especially when your job and future are on the line. But you're not alone. There are laws to protect you and rewards that recognize your courage. 

At Horn Wright, LLP, we’re honored to stand with whistleblowers across New York. Our team of seasoned FCA attorneys takes care of the legal maze so you can focus on what matters: telling the truth and getting the justice you deserve.  

If you’re ready to step forward, we’re here to stand with you. Contact our firm today for a FREE consultation of your case.