Whistleblower (Qui Tam) Settlement Funding

Whistleblower qui tam cases are expensive to pursue and difficult to win. However the settlements resulting from these cases can be in the six figures. If you are an attorney or plaintiff with slow-paying whistleblower settlements, RD Legal Funding can convert your settled cases into immediate cash. To find out if you qualify for our proprietary Fee Acceleration post-settlement funding program, please fill out the brief application to the right for a free consultation with one of our legal funding specialists. You can also reach us at 1-800-565-5177 to speak with a Fee Acceleration expert.

What is Qui Tam?

The term “qui tam” is an abbreviation of the Latin phrase “qui tam pro domino rege quam pro se ipso in hac parte sequitur,” which means “he who sues in this matter for the king as well as for himself.”  In 13th century England, private citizens used qui tam actions to access the King’s Court, receiving monetary rewards for bringing wrongdoers to justice.
 
In 1863, during the American Civil War, Congress enacted the False Claims Act (FCA) to tamp down corruption among private suppliers to the Union Army. Informants collected up to half of any recovered damages. Today, the Act is also known as Lincoln’s Law, the Informer’s Act, or the Qui Tam Statute.

Congress amended the Act in 1943, again to uncover unscrupulous World War II profiteers. Changes to the FCA reduced informers’ shares of the damages and imposed a personal knowledge requirement, making the suits very difficult to pursue.
 
Congress strengthened the FCA in 1986, increasing whistleblowers’ share of damages to 30 percent and reducing the knowledge requirement. The statute of limitations for FCA suits was lengthened and employee whistleblowers were granted formal protection against reprisals. These changes made it easier and more profitable for private citizens to file qui tam lawsuits. Since then, the government has collected over $20 billion from various suits, with about $2 billion paid out to whistleblowers.
 
Today, qui tam cases are lawsuits brought by an individual on behalf of the government. Federal and state laws allow a private citizen to bring a lawsuit against a company or another person if they believe that company or person has committed fraud against the government. While a case is under investigation, the identity of the whistleblower is kept confidential.

Common types of government fraud include securities fraud, pharmaceutical fraud, Medicare and Medicaid fraud, defense contractor fraud, fraudulent loans and grants, and federal government contractor fraud.

  • Joe Faltaous worked as a Neuroscience Sales Specialist for Eli Lilly and Company. He complained of the company’s illegal marketing, promotion and sale of Zyprexa to children and in higher than recommended dosages to adults. In 2009, Faltaous and nine other whistleblowers won a settlement with Eli Lilly in a civil qui tam action in U.S. District Court which was joined by additional federal and state prosecutions. The total settlement reached $1.415 billion.
  • Delma Pallares worked as a logistics manager and general merchandise manager for American Grocers from 1996 through 2003. She brought a qui tam case against the company’s owner, Samir Itani for engaging in false or fraudulent conduct by shipping food products past or near their expiration dates to U.S. troops stationed in the Middle East. The government intervened in the suit in November 2010, leading to Itani paying $13.2 million to settle charges.
  • Gregory Thorpe and Blair Hamrick were the first whistleblowers to file a qui tam action against GlaxoSmithKline (GSK) arising from the company’s defrauding Medicare, Medicaid and other government funded health care programs in connection with its market practices for Advair, Wellbutrin, Paxil, Lamictal, Zofran, Imitrex, Lotronex, Flovent, Baltrex, and Avandia. GSK agreed to plead guilty to criminal conduct and to pay $3 billion in criminal and civil fines, penalties and damages.
  • The government joined a qui tam lawsuit by Kendall Dyer, manager of Alliant Techsystems Inc. (ATK)’s flare program. The company paid a $36,967,160 settlement to resolve allegations that it knowingly sold the U.S. military flares that could ignite if dropped from low heights, creating major safety hazards.
     

Let RD Legal Accelerate Your Whistleblower (Qui Tam) Related Fees

RD Legal Funding is positioned to provide qui tam attorneys and their clients with immediate post-settlement funding. To start accelerating your legal fees today, please fill out the brief online application located at the upper right corner of this page. Or you can call RD Legal toll-free at 1-800-565-5177 to speak with one of our legal funding experts.

 


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