.What allows a corporate whistleblower to sue a former employer and receive a portion of awarded funds?(1 Point)Labor relationsFalse Claims ActWrongful dischargeNational Mediation Board
Question
.What allows a corporate whistleblower to sue a former employer and receive a portion of awarded funds?(1 Point)Labor relationsFalse Claims ActWrongful dischargeNational Mediation Board
Solution
The False Claims Act allows a corporate whistleblower to sue a former employer and receive a portion of awarded funds. This law, also known as the "Lincoln Law," encourages individuals to file lawsuits against fraudulent corporations on behalf of the government. Here are the steps:
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The whistleblower, also known as a relator, files a qui tam lawsuit on behalf of the government. This lawsuit is initially sealed, meaning it's kept secret from everyone except the government to allow the Justice Department to investigate the claim.
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The Department of Justice (DOJ), after conducting its investigation, decides whether it will join, or "intervene," in the case. The DOJ intervenes in only about one-quarter of qui tam lawsuits.
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If the DOJ decides to intervene, the government takes over the lawsuit. The relator can still assist in the case, but the government primarily handles proceedings from this point forward.
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If the DOJ decides not to intervene, the relator can continue with the lawsuit on their own.
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If the lawsuit is successful, the relator is entitled to a portion of the recovered funds. The percentage varies depending on several factors, including whether the DOJ intervened in the case. Typically, the relator can receive 15-25% of the recovery if the government intervened, and 25-30% if the government did not intervene.
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