We represent victims of reverse discrimination and anti-DEI whistleblowers

Whistleblower cases filed under the federal False Claims Act have been a powerful tool in the fight against companies that commit fraud against the government. In these claims, individuals known as relators bring qui tam lawsuits on behalf of the United States alleging impropriety by a government contractor or grantee. Should the government recover funds as a result of the defendant’s fraud, the relator is eligible to receive a share of the money, usually between 15 and 30 percent. In a recent Supreme Court case, a defendant company sought to restrict the types of whistleblower cases that can be brought under the FCA, but the justices expanded the statute’s reach. 

Wisconsin Bell, Inc. v. United States ex rel. Schutte centered on whether the FCA applies to cases where the funds associated with alleged fraud are coordinated by the government but not directly funded by it. To subsidize a program designed to increase telecommunications access in schools, the Federal Communications Commission (FCC) requires companies such as Wisconsin Bell to pay into a fund administered by a private not-for-profit corporation. Under this program, known as E-Rate, telecommunications companies are supposed to provide the “lowest corresponding price” to schools and then receive subsidies for their services. However, a whistleblower alleged that Wisconsin Bell used higher prices than they were allowed to, resulting in overpayments from the E-Rate program estimated in the millions of dollars.

In its defense, Wisconsin Bell claimed the FCA did not apply because the funds in question were not federal dollars, but money provided by telecommunications companies. The Supreme Court unanimously rejected this argument, holding that the FCA’s language encompasses fraud involving funds tied to government-coordinated programs, regardless of their source. Contractors and grantees must now be vigilant not only about federal funds but also about any funds connected to government programs, as they could trigger liability under the FCA for fraudulent claims. The ruling also strengthens the role of whistleblowers in uncovering fraud. 

By affirming the broad applicability of the FCA, the Court has empowered relators to pursue cases involving a wide range of government-coordinated activities. If you are aware of misrepresentation in a matter related to a government program, you might be able to serve as a relator in a qui tam lawsuit. Kardell Law Group has a long track record successfully asserting the rights of whistleblowers. We can review the facts in your case and advise if you might be entitled to payment for pointing out fraud.