Search Site
Menu
Supreme Court Decision Gives Whistleblowers More Time to File False Claims Act Lawsuits

A recent ruling by the U.S. Supreme Court means whistleblowers will have an additional four years to file False Claims Act lawsuits in the healthcare and various other industries.

The ruling, which was unanimous, came in the case of Cochise Consultancy v. U.S. ex rel. Hunt. It states that FCA claimants have three years to file a suit after a responsible federal official knew or should have known the relevant facts associated with the case, but no more than 10 years after the alleged violation occurred. That longer statute of limitations applies for cases in which the federal government failed to intervene. Prior to the ruling, the FCA statute of limitations varied depending on the state.

Impact of the decision

The decision will likely lead to an increased number of qui tam whistleblower cases, and could make defending against those lawsuits a little more difficult. Businesses and organizations will need to start holding onto records longer and performing more thorough exit interviews with employees, as there is now a longer window of time in which these suits could take place.

The effect could be particularly notable in the healthcare industry, as the vast majority of FCA settlements and judgments come in healthcare-related fields. The U.S. Department of Justice made $2.8 billion in recoveries in these suits last year, and $2.5 billion of those involved the healthcare industry. Of that $2.5 billion, about $2.1 billion resulted from cases filed by whistleblowers that the government then joined in on. For their part, whistleblowers received $301 million from settlements in those cases.

To learn more about the impact this case and decision could have on whistleblower law, meet with an experienced lawyer at Kardell Law Group.

Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    #600
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
Testimonials
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

FOLLOW US
Facebook Twitter Linkedin RSS Feed JD Supra