False Claims Act & Whistleblower Laws Flashcards

Under the Sarbanes-Oxley Act whistleblower provision (18 U.S.C. § 1514A), which employees are protected from retaliation?

Answer: Employees of publicly traded companies and their contractors who report securities law violations

SOX § 1514A protects employees of publicly traded companies and their subsidiaries or contractors who report violations of securities laws or SEC rules.

A company discovers that a former employee has filed a sealed qui tam complaint. What is the company legally prohibited from doing?

Answer: Taking retaliatory action against the employee for filing the complaint

The FCA's anti-retaliation provision prohibits adverse employment actions because an employee engaged in protected activity, including filing a qui tam complaint.

In False Claims Act cases, what is the purpose of the 'government's share' versus the 'relator's share' distinction?

Answer: The government retains 70-75% of proceeds when it intervenes; the relator receives 15-25%

When the government intervenes, it retains most of the recovery (roughly 75-80%) while the relator typically receives 15-25%; if the government declines, the relator may receive 25-30%.

Which whistleblower statute has a SOX-style process where the initial complaint must be filed with OSHA before proceeding to federal court?

Answer: The Energy Reorganization Act whistleblower provision

The ERA whistleblower provision requires initial administrative filing with OSHA before a complainant can bring a case in federal district court.

A qui tam relator's complaint is filed under seal. During the seal period, what is the government required to do?

Answer: Investigate the allegations and decide whether to intervene

During the seal period, typically 60 days (often extended), the DOJ investigates the allegations to decide whether to intervene and take over the prosecution.

Under the Dodd-Frank whistleblower program, an employee who first reports internally before going to the SEC is treated as if they reported to the SEC on which date?

Answer: The date of the internal report, provided they report to the SEC within 120 days

SEC rules allow whistleblowers who first report internally to receive credit as of their internal report date if they subsequently report to the SEC within 120 days.

Which FCA provision creates liability for a person who conspires with another to submit a false claim, even if they did not personally submit the claim?

Answer: 31 U.S.C. § 3729(a)(1)(C)

Section 3729(a)(1)(C) imposes FCA liability on any person who conspires to commit an FCA violation, extending liability beyond the person who actually submits the false claim.