Are there too many False Claims Act cases? Not only do the numbers say no, but the inference by FCA opponents that whistleblowers are filing frivolous suits is misguided.

First, let’s look at the numbers. Jacklyn DeMar of The Anti-Fraud Coalition argues we actually need more FCA cases to root out the likely amount of fraud that exists in a $6.27 trillion, yes trillion, federal budget.

• Of the 309,102 new civil cases filed in the United States in 2022, only 652 were qui tam actions — whistleblowers accounted for only 0.21% of the total civil cases filed. 
• Only $2.2 billion was recovered as a result of FCA cases in 2022 out of at least $300 billion in estimated fraud related to the Unemployment Insurance program, Paycheck Protection Program, and Medicare and Medicaid, among other government programs.
• Whistleblowers in successful FCA cases typically receive a portion of the recovery ranging between 15% and 30%. In fiscal year 2022, the government paid $488 million to whistleblowers.
• Putting the whistleblowers’ share in further perspective: $488 million is less than 0.01% of the annual federal budget.

We need more whistleblowers

At Keller Grover, we advocate for whistleblowers because they are making a sacrifice to speak up about wasteful spending and wrongdoing. Whistleblowers are often the only people able or willing to share information that can stop or expose a fraud, which is a view held not only by advocates like us but the federal government as well.

Keller Grover attorney Kate Scanlan, who’s also a member of TAF, appeared last year on a panel with Michael D. Granston, Deputy Assistant U.S. Attorney General for the Department of Justice’s Commercial Litigation Branch. They discussed the critical role whistleblowers play in False Claims Act enforcement.

“There’s all sorts of creative ways to engage in fraud, and ferreting out the next fraud scheme is always the challenge, right? We may find a particular fraud and course of conduct we address it. But then defendants move on to something new,” Mr. Granston said. “And that’s why we need to use all the tools at our disposal … to try to stay ahead rather than behind the fraud curve.”

Whistleblower awards are deserved

While large whistleblower settlements capture headlines, the monetary awards received by whistleblowers when recoveries are successful come at a personal cost.

“These cases go on for a long time…” Ms. Scanlan said on the panel. “A lot of (whistleblowers) get blackballed in their industries, and they’re not allowed to find places to work after they’ve filed these kinds of cases. …

“Smaller cases often involve key employees who are taking a big risk, to either disclose patient harm, or risks to our troops, or other material events that wouldn’t be known by the government except for this courageous individual who’s stepping forward to disclose what’s happening within their company.”

We stand up for these whistleblowers and guide them in determining the best path forward from the very beginning, helping minimize the impact of reporting, protecting their rights, and achieving the best possible outcome for the situation. 

Keller Grover provides confidential, free consultations to advise potential whistleblowers. If you need advice, contact us today.