When someone has evidence that a company or individual has engaged in misconduct, such as fraud, embezzlement, or insider trading, they can make reports and/or file a whistleblower lawsuit alerting authorities to these misdeeds. 

Whistleblower lawsuits are one of the federal government’s key defenses against fraud and other types of misconduct, which is why they can handsomely reward successful claims. Under the federal False Claims Act, whistleblowers can receive compensation if their lawsuit is successful in recovering funds the government has lost to fraud. 

Qui tam law is perhaps the most notable type of whistleblower law. It involves cases filed in response to a person or organization defrauding the U.S. government. These lawsuits are filed under the False Claims Act. 

The term qui tam comes from the Latin expression 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.” Successful qui tam lawsuits can greatly benefit both the government and the whistleblower, the latter of which may be entitled to a sizable award if the government takes action against the party that’s guilty of fraud. 

In general, internally making a good-faith, subjectively and objectively reasonable report opposing one or more frauds on the federal government by your employer may shield you from workplace retaliation. Employers who fire whistleblowers for telling their supervisor to stop fraud on federal payors, such as fraud involving Medicare, overbilling Medicaid, or billing for services not provided to TRICARE, may be liable under 31 U.S.C. § 3730(h) for the fired whistleblower’s back pay, front pay, compensatory damages, and attorney’s fees and costs. 

Some of the most common types of misconduct that prompt whistleblower lawsuits include the following: 

• Healthcare fraud 
• Defense contractor fraud 
• Embezzlement 
• Environmental hazards 
• Falsifying financial reports or statements 
• Insider trading 
• Making false statements to corporate auditors 
• Making false statements to the market on financial documents at a publicly traded company, including false revenue recognition 
• Medicare or Medicaid fraud 
• OSHA workplace safety violations 
• Pharmaceutical kickbacks, such as pharmaceutical companies paying doctors to prescribe or promote their drugs 
• Procurement fraud, such as manipulating the procurement process to land a government contract or service 
• Securities and commodities trading fraud 
• Tax evasion or tax fraud 
• Unlawful billing 

Any person with evidence of fraud or other unlawful activity on the part of a company or individual could potentially file a whistleblower lawsuit. Whistleblowers may include: 

• Employees of federal contractors 
• Employees in the public sector 
• Employees of nonprofit organizations 
• Employees of publicly traded companies 
• Employees at hedge funds, startups, crypto funds, healthcare organizations, and other companies 
• Employees of private companies, often in the financial or pharmaceutical industry 
• Government contractors 

The main criteria for whistleblowing are that a person has knowledge, and ideally evidence, of fraud or misconduct, and they’re willing to step forward and report it. Because whistleblower protections and requirements can vary depending on the type of misconduct and the law involved, it is critically important to seek legal advice whenever possible while still employed, and ideally before first blowing the whistle. 

Some whistleblowers are able to maintain their public anonymity, for example SEC whistleblowers and qui tam relators while the case is still under seal. The Securities and Exchange Commission (SEC) treats whistleblower tips, complaints, and referrals as confidential and nonpublic, subject to limited circumstances authorized by law. 

Additionally, some whistleblowers can remain relatively anonymous before they file suit. Whether to make an initial internal hotline report anonymously or not is a critical strategic question that you and a lawyer should discuss, if possible, before you blow the whistle. 

The amount of compensation a whistleblower can receive will depend on the nature and scope of the unlawful activity they report, as well as the strength of the evidence. For fraud committed against the U.S. government or violations of federal securities laws, whistleblowers may be eligible for significant financial awards. SEC whistleblowers are generally entitled to receive between 10-30% of monetary sanctions collected when the statutory requirements are met. Qui tam relators similarly may collect a percentage of the fraudulent funds recovered under the False Claims Act. 

Wrongfully terminated whistleblowers may be able to recover back pay, front pay, compensatory damages, and fees and costs, depending on the law that applies to their claim. Certain federal whistleblower laws, including the False Claims Act and National Defense Authorization Act (NDAA), provide protections against retaliation and may allow whistleblowers to recover damages if they are retaliated against for protected whistleblowing activity. 

Blowing the whistle can be frightening, especially if the subject of the complaint is a powerful company or person. Thankfully, there are laws in place that are designed to protect whistleblowers from retaliation and, in some circumstances, to keep their disclosures confidential. 

Under the False Claims Act, whistleblowers are protected from retaliation after reporting companies or individuals that have defrauded the government. The law may also allow whistleblowers to recover damages if they are retaliated against for protected whistleblowing activity. 

 In addition to maintaining confidentiality for whistleblowers in certain circumstances, federal whistleblower laws provide protections against employers firing, demoting, or otherwise punishing employees for reporting certain types of misconduct. 

Similarly, federal whistleblower protections may protect public employees from retaliation for reporting certain unlawful activity, depending on the circumstances and the law involved. 

One of the strongest whistleblower protections is found in the NDAA, which provides for contributing-factor causation and protects certain internal reports made to a supervisor. 

As noted in the section above, there are many federal and state laws that protect whistleblowers from retaliation. That said, every state, industry, and situation is different, and there are no guarantees. For example, if a whistleblower were to obtain evidence of misconduct through unlawful means, or in ways that violate company policy, they could potentially be fired or even sued. Generally, you should never hack into systems or download all the data from any one system. You should save evidence within your existing access and only the evidence you need to prove your whistleblower claim. 

The best way to ensure you don’t open yourself up to a countersuit or another type of retaliation is by working with an experienced whistleblower attorney. Contact us for a free, confidential consultation to see if we can help.

Yes. Illinois has laws that protect certain employees who report unlawful activity from retaliation by their employers. The Illinois Whistleblower Act provides protections for employees who disclose certain unlawful conduct, including reporting violations of state or federal laws, rules, or regulations. 

Some examples of employees who may be protected under Illinois whistleblower laws include: 

• Employees of private companies 
• Employees of public employers
• Employees who report unlawful activity to government authorities 
• Employees who report violations of state or federal law 

Employees who make protected reports may be protected from retaliation by their employers. Types of retaliation that may be prohibited include termination, demotion, harassment, or other adverse employment actions. 

Depending on the circumstances, employees who experience unlawful retaliation may be able to file a lawsuit and recover damages, including lost wages and other compensation. If you believe you have experienced whistleblower retaliation in Illinois, contact a Chicago whistleblower attorney to discuss your situation. 

The False Claims Act (FCA) is designed to protect whistleblowers who report fraudulent activity involving government funds or programs. If you report such fraud, the law protects you from retaliation, such as wrongful termination, demotions, or harassment. Additionally, under the FCA, whistleblowers may be eligible to receive a portion of any recovered funds if the case is successful. To fully understand your rights and protections as a whistleblower, reach out to the team of attorneys at Kaplan Law. 

The SEC Whistleblower Program provides incentives and protections for individuals who report securities violations, such as insider trading or fraud. Whistleblowers may receive a financial reward if their information leads to a successful enforcement action. Additionally, the program safeguards whistleblowers from retaliation, such as being fired or mistreated for their report. The SEC also allows whistleblowers to report violations anonymously. If you are considering reporting securities violations, Kaplan Law Firm can guide you through the process and help ensure your rights are protected. 

If you suspect Medicaid fraud, acting carefully is essential. Whistleblowers play a vital role in exposing fraud, but it’s important to preserve relevant evidence and consider your reporting options, which may include reporting the fraud to appropriate government authorities or through internal channels at your workplace. Whistleblowers who report fraud in good faith may be protected under state and federal laws from retaliation. Contact Kaplan Law’s whistleblower attorneys to ensure your rights are safeguarded and to get advice on how to proceed. 

Yes, whistleblowers who report financial fraud, such as fraudulent accounting practices or misappropriation of funds, may be protected under federal and state laws, depending on the circumstances and the law involved. Protections may include protection from retaliation, such as wrongful termination or demotion. To ensure you follow the proper steps and protect your whistleblower rights, Kaplan Law Firm can help you navigate reporting financial fraud and defending against retaliation. 

If you are aware of PPP fraud, whistleblowers can report it to the U.S. Department of Justice or the Small Business Administration’s Office of Inspector General. Gathering and preserving relevant evidence of the fraud can be important to support a potential claim. Whistleblowers may be protected from retaliation when reporting fraud, depending on the circumstances and the law that applies. To ensure you are taking the appropriate legal steps and protecting yourself from retaliation, Kaplan Law Firm can assist you in this process. 

If you were fired for refusing to participate in illegal activity, whistleblower protections may apply to your situation, depending on the circumstances and the law involved. Some laws protect employees from retaliation when they refuse to engage in unlawful acts or report them. It’s important to document the situation and contact Kaplan Law Firm to explore your rights and legal options. You may have grounds to file a whistleblower or wrongful termination claim and seek compensation for damages. 

Kaplan Law Firm is an employment law and civil rights firm founded by Austin Kaplan in Austin, Texas. Since 2015, our firm has represented hundreds of clients in a wide range of employment and civil rights matters, including whistleblower complaints and claims for whistleblower retaliation. 

We’ve recovered millions of dollars for our clients; received dozens of five-star reviews on Google and Avvo; and our attorneys have been featured in The New York Times, The Washington Post, Bloomberg, Fast Company, and on CNN. 

Now serving clients in Chicago, our attorneys are committed to providing experienced, personalized representation to employees facing whistleblower retaliation and other employment law issues. 

Reach out today for a free, confidential case review to see if we can help you understand your rights and legal options.