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Whistleblower Disclosures Result in Recoveries of $1.45 Billion in FY 2007

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According to data released by the Department of Justice this week, disclosures by qui tam relators have led to recoveries of $1.45 billion in fiscal year 2007. Approximately 75% of all recoveries in False Claims Act suits resulted from disclosures by qui tam relators. This highlights the importance of the qui tam provision of the False Claims Act in combating contractor fraud. Unfortunately, some courts have erected barriers to qui tam actions that are inconsistent with the plain meaning of the False Act and that discourage whistleblowers from reporting fraud on the government. Senator Grassley recently introduced the False Claims Correction Act to restore the original intent of the 1986 amendments to the qui tam provision of the False Claims Act. At a time when contractors are taking advantage of lax oversight, it is critical to strengthen the False Claims Act.

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