Will I Qualify For A Lawsuit Loan If I File A Qui Tam (Whistleblower) Action?

The Qui Tam Information Center identifies qui tam is a provision of the Federal Civil False Claims Act (1863) that permits private citizens to file a lawsuit on behalf of the United States government. The claims allege fraud by government contractors and/or others who have either received government funds were engaged in abuse of government funds. The act allows private citizens to share in the amount recovered.

In Law, the term qui tam connotes whistleblower protection laws. Such protection is provided to individuals who notify the government of their suspicions that entities have engaged in fraud and/or abuse. The etymology of the term is a Latin expression, viz., “qui tam pro domino rege quam pro se ipse.” The phrase actually means “he who sues the king as for himself.”

In many instances, these claims arise when employees report fraud and/or abuse in which their employers have engaged. The False Claims Act (1863, revised’86), is the federal law out of which whistleblower protection emerged. The Act was intended to combat fraud during the Civil War, at a time during which suppliers often attempted to cheat the federal government. The government derives sufficient benefit from it these actions to justify sharing a percentage of either of monies recovered or damages identify in exposing such fraud.

These suits are generally filed by private citizens, acting on behalf of the government’s interest, in an attempt to prevent abuse. A settlement loan may be required to assist the individual bringing such an action with expenses incurred during the process of the litigation.

Individuals who bring such suits are also called relators. When such cases are filed, the relator need not have been personally harmed by the defendant’s conduct. Additionally, the False Claims Act allows the relator to recover 15-30% of any settlement amount. Furthermore, the statute provides for payment of attorney’s fees. (Attorneys are required to bring such lawsuits, due to the fact that these cases are brought on behalf of the government and may only be prosecuted by an attorney.)

By providing private citizens both the knowledge and resources needed to combat such egregious acts, the act can be a very active tool. It is an unfortunate reality, however, that individuals who are sufficiently courageous to bring such actions are often subjected to a great deal of persecution in the workplace. It is important to realize that such individuals should be commended for their willingness to speak out against such fraud and abuse, and admired for taking actions that many citizens simply would not.

These actions are unique, in that the government may elect to pursue an action against these entities on its own. If so, the individual who initially brings the action to the government’s attention, would serve as an aid to the government in its prosecution, but would not bear the legal expenses incurred with bringing such an action. If this situation occurs, a lawsuit loan would not be required, due to the fact that the government is prosecuting the case.

Significantly, if the government chooses not to prosecute the case, the relator may still be able to pursue a civil claim against the abusers. In such situations, the lawsuit loan is often required to enable the individual to continue in the prosecution against the entity against which they claim is brought.

Additionally, it is important to bear in mind that many expenses may also arise when such claims are filed. Although the whistle-blower does have protection under the law from wrongful termination, etc., in many of these situations the pursuit of such actions drastically drains plaintiffs of resources.

Congress enacted this law in order to effectively identify and prosecute government waste and abuse, and to address issues related to fraudulent activity in which government-related entities may be involved. The issue of whether a lawsuit loan would be required in such instances involves an investigation of myriad factors. While awaiting the government’s decision and action, the individual filing such a claim continues to have expenses, not to mention impediments that often occur with employment.

It is true that under the Act, whistleblowers do receive protection from wrongful termination. Additionally, the Act provides that an employee wrongfully terminated for filing such a claim must be reinstated with seniority, double back pay, interest on back pay, compensation for discriminatory treatment, and reasonable legal expenses. However, the delay between the date on which wrongful termination occurred and the date on which reinstatement is achieved, may result in devastating financial consequences for the relator. A lawsuit loan is often very helpful during this interval.

To bar reprisals against those who expose government fraud and abuse, Congress adopted this legislation in’78. Unfortunately, due to the widespread harassment and wrongful termination of employees who reported such fraud and abuse against their employers, it was necessary for Congress to strengthen its position to protect whistleblowers in’89. Following the enhanced protection, many states have adopted specific employment laws addressing the issue of discrimination against such employees.

As the legal expenses continue to roll in, you may find it necessary to obtain a lawsuit loan to provide necessary financial-relief. Ensure that you do your homework and find settlement funding designed to meet your needs.

Are you confused about obtaining a lawsuit loan? Please stop by our site where you can find out all about the benefits of obtaining lawsuit loans and what they can do for you.