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New False Claims Act SettlementBrian GilesBy Brian Giles, Esq. on Tuesday, January 13, 2015On October 10, 2014, Boeing agreed to pay $23 million to resolve False Claims Act allegations it submitted false claims on maintenance contracts with the government.  Four whistleblowers will receive $3.9 million for filing the complaint concerning the alleged overcharging of the Air Force.

The False Claims Act (31 U.S.C. §§ 3729–3733) is a federal law that imposes liability on persons and companies (typically federal contractors) who defraud governmental programs. It is the federal government’s primary tool in combating fraud against the government.  The law includes a "qui tam" provision that allows people who are not affiliated with the government, called "relators" under the law, to file actions on behalf of the government (informally called "whistleblowing"). Persons filing under the Act stand to receive a portion (usually about 15–25 percent) of any recovered damages. As of 2012, over 70 percent of all federal government False Claim Act actions were initiated by whistleblowers. Claims under the law have typically involved health care, military, or other government spending programs.

The False Claims Act has a detailed process for making a claim under the Act.  A lawsuit must be filed in U.S. District Court in camera (under seal). After an investigation by the Department of Justice within 60 days, or frequently several months after an extension is granted, the Department of Justice decides whether it will pursue the case.  If the case is pursued, the amount of the reward is less than if the Department of Justice decides not to pursue the case and the plaintiff/relator continues the lawsuit himself.

At Giles Lenox, we are experienced in handling False Claims Act cases.  If you believe you have a claim or a claim has been submitted against your company, contact the attorneys at Giles Lenox immediately to determine your rights.

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