False Claims Act Statute of Limitations

What if you could earn financial rewards for exposing fraudulent claims to the federal government? The False Claims Act (FCA) is a federal law that awards whistleblowers a percentage of the funds recovered, plus reasonable attorney fees and costs.

Because "blowing the whistle" is a legally protected activity, you can also recover damages for any harm, such as getting fired or demoted, that you experience for coming forward. Recovery can also include job reinstatement. So, the statute gives whistleblowers financial rewards and job protection against retaliation.

Before starting a new career as a government watchdog, you should consider some crucial limitations. There are time limits to file your claim, whether for whistleblowing or retaliation. The False Claims Act statute of limitations can end even the most worthwhile cases. Below is an overview of the FCA's filing deadlines to help you avoid losing a significant case due to technical issues.

False Claims Act Overview

The False Claims Act became law during the Civil War. It's aimed at ending fraud against the federal government. The FCA imposes civil penalties and recovery for triple damages against anyone who knowingly submits a fraudulent claim to the United States government. On top of civil penalties, FCA violators also face disqualification from future state and federal government contracts.

The whistleblower law allows either the United States government or private citizen whistleblowers to bring a civil action against alleged offenders on behalf of the government. In court filings, whistleblowers go by the names "relators" or "qui tam relators." Lawsuits brought by private citizens are "qui tam cases." People file the cases in the federal district court.

Creating citizen deputies to help fight fraud is a major part of the False Claims Act (FCA). The whistleblower can get up to 30% of the money recovered on behalf of the federal government in a qui tam case.

Relators must file their qui tam lawsuits under seal. The courts seal the FCA complaint for at least 60 days after it gets filed so the government can decide whether to take over the case. The U.S. Department of Justice (DOJ) evaluates the case to determine whether it will intervene. If the Justice Department declines to get involved, the qui tam whistleblower may proceed with the action.

Criminal prosecution is also possible.

The FCA is effective in protecting taxpayer dollars. In 2023, authorities recovered about $2.68 billion in fraudulent claims. One of the leading recoveries under the federal law was in the healthcare industry for improper billing to Medicaid and Medicare.

Beating the Clock

Many legal rights and remedies depend on compliance with strict deadlines. These time limits are "statutes of limitations." The False Claims Act has statutes of limitations. If you wait too long to file an FCA claim, you may lose your chance to recover compensation.

FCA Statute of Limitations

FCA cases generally must get filed within one of two different timelines:

• Within six years from the date the person committed the fraud or
• Within three years after the United States learned of or reasonably should have known about the fraud.

But, under no circumstances may a qui tam action get filed more than 10 years after the violation.

The federal government officials whose knowledge triggers the three-year limitation period are the U.S. Attorney General or their designees within the Department of Justice.

The U.S. Supreme Court clarified these deadlines in 2019 in Cochise Consultancy v. United States.

First-to-File Rule

There is another time limit you need to know when filing an FCA action. The government's "first-to-file" rule states that only the first whistleblower to file a lawsuit is eligible for the bounty. So, keep this in mind if you're contemplating filing a qui tam lawsuit. The first to file the lawsuit gets compensation, and all others do not.

Whistleblower Retaliation Deadline

Whistleblowing can lead to repercussions. Employer retaliation is a possibility. Employers, whether through managers or supervisors, can't take adverse employment action against whistleblowers. This means they can't fire you, demote you, withhold a bonus or raise, or reassign you because you came forward.

If you want to file a claim for whistleblower retaliation under the FCA, you have three years from the retaliatory employment actions to file a lawsuit.

Can You Sue Under the FCA? Speak With a Lawyer

The FCA presents unique opportunities for people to help detect and remedy fraud in the federal government and earn a reward in the process. But, there are time limits and restrictions on who can file FCA claims. Legal advice is important. Learn more about your rights under the FCA by speaking with a whistleblower-qui tam attorney near you.