Search Site

Whistleblowers Who File Late May Not Receive Awards

A pair of recent victories by defendants in False Claims Act lawsuits demonstrates the importance of speaking up quickly for whistleblowers who wish to share in fraud enforcement action recoveries.

Two companies, PharMerica and Biotronik, both came out victorious in FCA lawsuits filed by whistleblowers that contained somewhat overlapping allegations with previously filed FCA lawsuits. The whistleblowers in both cases were company insiders.

The Department of Justice had intervened and settled in the previous FCA suits related to these cases, which barred any subsequent whistleblower lawsuits involving similar fraud allegations. These rules even apply to cases in which the whistleblowers made allegations concerning which the Justice Department did not previously intervene, because the government already had become a party to the previous suit.

Being the first to file

Under federal laws, there is a “first-to-file” bar that limits any subsequent FCA lawsuits containing similar allegations to those of previous allegations. In 2015, the United States Supreme Court ruled the bar does not apply to second actions raising similar allegations if the original FCA lawsuit was either dismissed or is no longer pending. However, PharMerica and Biotronik both settled in their previous lawsuits (for $31.5 million and $4.9 million, respectively). This meant they did not fall into the category of the exception identified by the Supreme Court in that ruling.

Therefore, if you are aware of wrongdoing within your company and hope to be able to earn awards in a False Claims Act lawsuit, it is important you come forward with the information as soon as possible so you can clear the “first to file” bar.

For more information on filing a False Claims Act lawsuit, work with a skilled Dallas whistleblower attorney at Whistleblower Law for Managers.

Awards & Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
As Seen In
In his new book, "Standing Up to China: How a Whistleblower Risked Everything for His Country," former client & Author, Ashley Yablon, quotes Attorney Steve Kardell about Whistelblower Law.
  • "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

  • "Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone."  -V.B.

  • "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

  • "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.