In the last fiscal year, the federal government recovered a record $5.69 billion under the False Claims Act, which means the payouts to the whistleblowers, who play a crucial role in exposing cases of fraud, have been some of the biggest ever.
Whistleblowers who file false claims lawsuits can receive up to 30 percent of the money that a company pays to the government, which added up to $435 million in whistleblower rewards primarily for mortgage, health care and defense fraud cases.
Here’s a round up of some of the biggest false claims settlements and the subsequent whistleblower rewards from the last fiscal year:
Johnson & Johnson
Settlement: $2.2 billion “to resolve criminal and civil liability arising from allegations relating to the prescription drugs Risperdal, Invega and Natrecor, including promotion for uses not approved as safe and effective by the Food and Drug Administration and payment of kickbacks to physicians and to the nation’s largest long-term care pharmacy provider.” It’s one of the largest health care fraud settlements in U.S. history, according to the Department of Justice.
Whistleblower’s share: $167.7 million divided among whistleblowers in Pennsylvania ($112 million), Massachusetts ($27.7 million) and California ($28 million).
JP Morgan Chase
Settlement: $614 million “for violating the False Claims Act by knowingly originating and underwriting non-compliant mortgage loans...
Jon L. Gelman of Wayne NJ is the author of NJ Workers’ Compensation Law (West-Thompson-Reuters) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thompson-Reuters). For over 4 decades the Law Offices of Jon L Gelman 1.973.696.7900 email@example.com have been representing injured workers and their families who have suffered occupational accidents and illnesses.