Whistleblowers have been awarded more than $3 billion in False Claims Act cases against health care companies and government contractors that have defrauded the government, and this powerful financial incentive has enabled the federal government to recover more than $20 billion.
Should lawyers -- like other corporate insiders -- be able to take advantage of these financial incentives for blowing the whistle on corporate fraud? I have identified five cases in which lawyers sued their former clients under federal or state False Claims Acts.
This presentation explains how courts resolved the legal and ethical issues that arose in those cases. It also describes how the Securities and Exchange Commission addressed similar issues in its Whistleblower Program regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Financial Incentives for Whistleblowing Lawyers? The False Claims Act & Dodd-Frank
1. Financial Incentives
for Whistleblowing Lawyers?
The False Claims Act
& Dodd-Frank
Kathleen Clark
Washington University in St Louis
39th ABA National Conference on Professional Responsibility
San Antonio
30 May 2013
6. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
SCt 2000
Bury v Community Hospital of Central Calif
Ca5thApp 2002
US ex rel Repko v Guthrie Clinic
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v Quest
SDNY 2011
10. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
SCt 2000
Bury v Community Hospital
Ca5thApp 2002
US ex rel Repko v Guthrie Clinic
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v Quest
SDNY 2011
11. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
SCt 2000
Bury v Community Hospital
Ca5thApp 2002
US ex rel Repko v Guthrie Clinic
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v Quest
SDNY 2011
12. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
SCt 2000
Bury v Community Hospital
Ca5thApp 2002
US ex rel Repko v Guthrie Clinic
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v Quest
SDNY 2011
17. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
SCt 2000
Bury v Community Hospital
Ca5thApp 2002
US ex rel Repko v Guthrie Clinic
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v Quest
SDNY 2011
18. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
SCt 2000
Bury v Community Hospital
Ca5thApp 2002
US ex rel Repko v Guthrie Clinic
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v Quest
SDNY 2011
19. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
SCt 2000
Bury v Community Hospital
Ca5thApp 2002
US ex rel Repko v Guthrie Clinic
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v Quest
SDNY 2011
20. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
SCt 2000
Bury v Community Hospital
Ca5thApp 2002
US ex rel Repko v Guthrie Clinic
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v Quest
SDNY 2011
21. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
SCt 2000
Bury v Community Hospital
Ca5thApp 2002
US ex rel Repko v Guthrie Clinic
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v Quest
SDNY 2011
22. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
Attorneys
“should be encouraged”
to use qui tam law suits
to expose fraud
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v
Quest
SDNY 2011
23. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
SCt 2000
Bury v Community Hospital
Ca5thApp 2002
US ex rel Repko v Guthrie Clinic
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v Quest
SDNY 2011
24. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
SCt 2000
Bury v Community Hospital
Ca5thApp 2002
US ex rel Repko v Guthrie Clinic
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v Quest
SDNY 2011
25. US ex rel Doe v X Corp
ED VA 1994
Vermont Agency Natl Res v US ex rel Stevens
SCt 2000
Bury v Community Hospital
Ca5thApp 2002
US ex rel Repko v Guthrie Clinic
MD PA 2008, 2011
US ex rel Fair Laboratory Practice Assoc v Quest
SDNY 2011
38. Financial Incentives
for Whistleblowing Lawyers?
The False Claims Act
& Dodd-Frank
Kathleen Clark
Washington University in St Louis
KathleenClarkEsq@gmail.com
314-827-4081