A common theme of what we discuss here and what we tell our clients is that the decision to bring a whistleblower lawsuit – whether it be a False Claims Act (FCA) claim, or an SEC, IRS, CFTC whistleblower claim – is not an easy one, and should only be pursued after thoroughly consulting with an attorney. While the rewards can be great, with many millions of dollars being paid out to hundreds of whistleblowers every year, the costs can be significant as well, especially where there is limited benefit or there is lack of clear guidance in pursuing the claim. Below we discuss the primary risks and benefits of bringing a whistleblower lawsuit.
Risk: Your Career
The heart of a successful whistleblower suit is that a person has previously undisclosed information relating to fraud perpetrated on the U.S. government (such as through faulty Medicare and Medicaid claims) or a violation of federal laws such as the U.S. securities or tax laws. In many cases, this information is provided by an employee or executive of a company, and those companies may seek to retaliate against those who provide information to the government.
The good news for employees and executives, however, is that a whistleblower attorney can often safeguard their anonymity for much of the process, and certainly all initial consultations with an attorney will remain confidential with the client always in the driver’s seat of determining when to “go public,” if at all. Furthermore, your employer is prohibited by law from retaliating against you in bringing a claim for whistleblowing and your attorney can defend your interests when such attempts are made.
Risk: Your Reputation
Related to career considerations, many individuals are worried about their professional reputations beyond their current positions. It is true that future employers may take whistleblowing activities into consideration, but, again, your identity may very well never become known and you have the ability to maintain confidentiality in many situations. Furthermore, in a successful suit involving millions of dollars, you may be unconcerned with a future professional reputation and may even benefit reputationally as a person willing to take courageous action on behalf of the common good.
Benefit: Doing the Right Thing
Corruption involving Medicaid alone costs American taxpayers $60 billion a year, and that does not include fraud related to Medicare, defense procurement, or any of the other innumerable ways in which wrongdoers defraud the U.S. government. Similarly, in the world of SEC, IRS, and CFTC violations, it is innocent market players and taxpayers that bear the cost of the violations of others who profit by breaking the rules.
The federal government has limited resources to track down every wrongdoer is seeking to financially prosper on the backs of honest Americans, but, by bringing a whistleblowing claim, you can assist your country and your neighbors by helping to make sure our tax dollars are wisely spent and criminals are not allowed to take advantage of us.
Benefit: Significant Financial Rewards
Finally, the financial rewards involved in a successful whistleblowing claim can be enormous. We have regularly profiled here ordinary employees and citizens who obtain 7- and 8-figure paydays for bringing violations to light. In a typical FCA suit, a whistleblower will win 15-25% of the total amount recovered by the U.S. government. SEC and IRS whistleblowers are also handsomely rewarded, with the SEC paying over $154 million in rewards directly to whistleblowers between 2011 and 2016 alone.
Work with Experienced Whistleblowing Attorneys You Can Trust
At Kreindler & Associates, we have made it our primary mission to do everything we can to help individuals in bringing whistleblowing claims that reward them financially and promote positive social change while protecting their personal interests. Whether you are bringing a FCA claim over procurement or healthcare fraud, or a whistleblowing claim based on SEC, IRS, or CFTC violations, our experienced attorneys will work with you every step of the way to determine your appropriate course of action, protect you from retaliation, and collect your much-deserved reward. If you suspect you have information leading to a successful whistleblower suit, contact us today for an evaluation of your options.
