Whistleblower Payments Top $300 Million Under False Claims Act in Fiscal Year 2014

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Whistleblower law firm Young Law Group expects awards to relators in qui tam litigation to finish in the top five.

Young Law Group, P.C.

Young Law Group, P.C.

Fiscal Year 2014 already ranks sixth on the list for highest payments to relators under the False Claims Act.

A review of press releases issued by the Department of Justice since October 1, 2013 conducted by Young Law Group reveals that whistleblowers have been awarded more than $300 million from settlements in qui tam lawsuits in the current fiscal year. The federal government’s fiscal year begins on October 1st, leaving more than four months left to add to the impressive amount so far.

The two largest settlements, Johnson & Johnson in November 2013 and JPMorgan Chase in February 2014, have also led to the largest payouts. More than $167 million was split among the whistleblowers in Johnson & Johnson. The sole relator in JPMorgan Chase was entitled to $63.9 million.

A breakdown of the amount of awards in each settlement can be found on the Young Law Group website.

During FY 2013, whistleblowers received more than $345 million. * The record for the largest amount was set in 2011, when relators were awarded more than $500 million. In total, since the False Claims Act was amended in 1986, whistleblowers have been paid more than $4 billion for information they have brought to the government under the law. **

Payments for tips to whistleblowers in Endo Pharmaceuticals, Genzyme and Ensign Group were not included in the total for the current year because they were not disclosed by the Department of Justice. The addition of awards in these cases should add more than $25 million to the current total, based on the statutory percentages specified in the legislation.

“If our calculations are correct, Fiscal Year 2014 already ranks sixth on the list for highest payments to relators under the False Claims Act,” said Eric L. Young, Esq., managing partner of Young Law Group.

“Payments for information about health care fraud continue to account for the majority of rewards as the government fights fraud against Medicare, Medicaid and other government programs,” added Young.

About the Federal False Claims Act

The False Claims Act permits individuals to file lawsuits on behalf of the federal government to recover money paid out due to false statements. The individual filing the lawsuit is known as the relator. The government is permitted to intervene in the lawsuit and prosecute it to its conclusion if they wish. In this case, an eligible relator may receive between 15 and 25 percent of the amount recovered by the government. If the government declines to intervene and the individual continues the lawsuit against the company, they may be entitled to between 25 and 30 percent of the recovery.

The False Claims Act, also known as Lincoln’s Law, was passed in 1863 to fight fraud during the Civil War. In 1986, it was amended to increase incentives for relators and provide for treble damages against defendants.

About Young Law Group, P.C.

Young Law Group represents clients filing qui tam lawsuits under the False Claims Act and providing tips to the SEC, U.S. Commodity Futures Trading Commission, and Internal Revenue Service.

Eric L. Young, Esq., managing partner of Young Law Group, represented the first whistleblower awarded compensation by the IRS under the mandatory reward program created following the Tax Relief and Health Care Act of 2006. Young has also served as an expert witness in areas of U.S. whistleblower law and represented clients in some of the largest qui tam recoveries. Young is licensed to practice law in the Commonwealth of Pennsylvania.

For a free, confidential case evaluation and discussion about whistleblower laws and rights, please call Eric Young, Esq., at 1-800-590-4116.

Learn more about Eric Young, Esq., and Young Law Group at http://young-lawgroup.com    

ATTORNEY ADVERTISING. Young Law Group, P.C. is a private law office located at 123 S. Broad St. Set 1920, Philadelphia, PA 19109. The firm will associate with local counsel in other jurisdictions when necessary. Young Law Group may not be able to represent residents of all states. Past results do not guarantee or predict a similar outcome in any present or future matter.

The lawsuits specifically identified here are captioned as United States ex rel. Victoria Starr v. Janssen Pharmaceutica Prods. L.P., Civil Action No. 04-1529 (E.D. Pa.); United States ex rel. Lynn Powell v. Janssen Pharmaceutica Prods. L.P. and Johnson & Johnson, Civil Action No. 04-5184 (E.D. Pa.); United States ex rel. Camille McGowan and Judy Doetterl v. Janssen Pharmaceutica, Inc., Janssen Pharmaceutica Prods. L.P., and Johnson & Johnson, Civil Action No. 05-5436 (E.D. Pa.); United States ex rel. Kurtis J. Barry v. Ortho-McNeil-Jannsen Pharms., Inc. and Johnson & Johnson, Inc., Civil Action No. 10-0098 (E.D. Pa.); United States ex rel. Lisitza and Kammerer, et al. v. Johnson & Johnson, et al. Civ. No.: 07-10288, 05-11518 (D. Mass); United States ex rel. Keith Edwards v. JPMorgan Chase Bank NA et al, Case No. 13-00220 (S.D.N.Y.); United States ex rel. Ryan v. Endo Pharmaceuticals Inc., Civil Action No. 05-cv-3450 (E.D. Pa.); United States ex rel. Weathersby, et al. v. Endo Pharmaceuticals Inc., et al, Civil Action No. 10-cv-2039 (E.D. Pa.); United States ex rel. Dhillon v. Endo Pharmaceuticals, Civil Action No. 11-cv-7767 (E.D. Pa.); United States ex rel. Fuentes, Russo v. Genzyme Corp., No. 09-cv-1245 (M.D. Fla.); United States ex rel. Kelley v. Genzyme Corp., No. 10-cv-549 (M.D. Fla.); United States of America ex rel. Gloria Patterson v. Ensign Group Inc., Case No. SACV 06-6956 CJC (ANx) (C.D. Calif.); and United States of America ex rel. Carol Sanchez v. Ensign Group Inc., Case No. SACV 06-0643 CJC (ANx) (C.D. Calif.).

For attribution purposes:

** http://www.justice.gov/civil/docs_forms/C-FRAUDS_FCA_Statistics.pdf

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