Whistleblower and False Claims Act Litigation

The False Claims Act and similar state laws reward individuals who report fraud against the government. Siprut PC has a substantial whistleblower practice; our attorneys have led litigation resulting in settlements in excess of $100 million, and we are actively prosecuting numerous False Claims Act lawsuits:

  • U.S. ex rel. Robinson v. Northrop-Grumman Corp. (Case No. 89-cv-6111, N.D. Ill.) Qui tam action brought against Northrop-Grumman for fraud in connection with the B-1 bomber, the B-2 “Stealth” bomber, and the F-15 fighter. Sixteen years after the case was filed, it was settled prior to trial for a total recovery of $135 million.
  • U.S. ex rel. McGee v. IBM, Corp., et al. (Case No. 11-cv-3482, N.D. Ill.) Currently pending, the case concerns a bid-rigging conspiracy in connection with a $50 million Homeland Security Project in Cook County. Successfully defeated IBM’s motion to dismiss in its entirety.
  • U.S. ex rel. Solomon v. Lockheed Martin Corp. (Case No. 3:12-DV-4495-D, N.D. Tx.) Currently pending, the case seeks more than $100 million in damages for fraud in connection with the F-35 Joint Strike Fighter, the most expensive weapons program ever.
  • Currently under seal is a qui tam action for the submission of false claims by a facility performing Magnetic Resonance Imaging in violation of Medicare’s Multiple Procedures Payment Reduction Policy.
  • Currently under investigation is a potential Medicare qui tam action against a pharmaceutical manufacturer and its distributors for overcharging the government hundreds-of-millions of dollars through falsely reporting the Average Wholesale Price of its drugs.
  • Currently under investigation is a potential Medicare/Medicaid qui tam action concerning fraud in connection with the efforts of a manufacturer of a defective medical implant device to obtain FDA approval of a the implant. Potential damages valued in excess of $100 million.
  • Currently under investigation is a potential qui tam action in connection with hundreds-of-millions of dollars in false claims relating to mortgage foreclosures.

Successful whistleblowers may recover a reward of at least 15% and up to 30% of the funds they help the government recover. Payments for whistleblowers can be substantial. In the last decade alone, whistleblowers under the Federal Claims Act have recovered almost $10,000,000,000 for the United States and received over $1,600,000,000 in reward money. Payments to individual whistleblowers often exceed millions of dollars. In addition to the False Claims Act and parallel state laws, the IRS also recently established regulations that provide rewards for whistleblowers who notify the IRS about tax evasion. Similarly, under the Dodd-Frank Financial Reform Act, individuals who provide the SEC with original information about corporate misconduct receive an award if the information leads to a successful recovery by the SEC.

Whistleblower claims often involve the following industries and issues, among others:

  • Medicare and Medicaid fraud
  • Pharmaceutical fraud
  • Defense contractor fraud
  • Tax fraud
  • Research and grant fraud
  • Building and roadway construction
  • Public works projects and federal government construction
  • Loan guarantees
  • USDA fraud
  • Postal fraud
  • Economic stimulus fraud
  • Disaster relief
  • Securities and commodities market fraud

Contact us to discuss your whistleblower claim.