Hard Times for Whistleblowers

Headlines describing $500-plus million settlements with the Department of Justice (DOJ) in False Claims Act (FCA) cases initiated by whistleblowers -- often former employees of defense contractors, pharmaceutical companies, and others doing business with the government -- have encouraged many disgruntled employees to try it themselves. But they can have a hard time making their own case if the government declines to intervene. Although the 1986 FCA amendments generally made the private action more available, the courts' interpretation of the FCA has not been easy on whistleblowers who stand in court without the United States at their side. As judges weed out unworthy cases, two trends run against the legislative goal of encouraging more whistleblowers, and invite instead a tactical corporate response that undercuts the legislative goal.

20 minute read October 28, 2005 at 10:42 AM
By
James J. Graham
Hard Times for Whistleblowers

Headlines describing $500-plus million settlements with the Department of Justice (DOJ) in False Claims Act (FCA) cases initiated by whistleblowers — often former employees of defense contractors, pharmaceutical companies, and others doing business with the government — have encouraged many disgruntled employees to try it themselves.

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