New Jersey False Claims Act Lawyer


In January 2008, the New Jersey Legislature passed the False Claims Act, also known as the Whistleblower Act. This False Claims Act parallels the Federal False Claims Act, which provides benefits to those with knowledge of individuals or entities who are in essence stealing money from the State. The New Jersey False Claims Act or Qui Tam Act provides certain benefits to those pursuing these claims. What this means is that if you are an employee of a certain company who is submitting false claims to obtain state monies under false pretenses, obtaining state benefits under false pretences, or generally lying to the state in order to obtain some sort of benefit, this person - who would be deemed a “whistleblower” - would be permitted to receive a certain percentage of the monies obtained in a court action. The New Jersey Attorney General would have the first option to pursue the lawsuit on behalf of the whistleblower and under the circumstances the whistleblower would see from 15% to 25%. There is a higher percentage if the Attorney General’s Office does not take the case and the civil case is pursued by the whistleblower. The following are numerous examples of False Claim Act litigation that has been pursued.
There are various types of False Claims Act categories which are commonplace.  Initially, there is defense contractor fraud, of which an example is Akal Security Inc., which is one of the nation’s largest security providers in the county, had to pay $18 million to resolve allegations pertaining to the training of civilian guards at eight US Army bases. In this particular case, the whistleblowers were the individuals who worked at various locations as security guards. Another example would be health care fraud. There was a case settled against New York and New York City alleging that they committed health care fraud. Another example is Medicare and Medicaid fraud, an example of which would be Healthways, who settled for $40 million.  Another example is a pharmaceutical False Claims Act, which is exemplified by a $1.4 billion settlement against Drug maker Eli Lilly.