The qui tam provisions of the False Claims Act (FCA) allow employees to bring whistleblower claims, on behalf of the government, against employers for alleged fraudulent acts harmful to the government. A carrot encouraging whistleblowers to bring these suits is that they may share in a substantial part of any government recovery. Qui tam suits of this type have grown increasingly popular. They have been particularly troublesome for health care industry employers, largely because much of the evidence needed to defend against the suits is confidential patient health care information (PHI) protected by the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Fortunately for employers, a recent line of cases permits employer counterclaims against whistleblowers who do not properly protect confidential employer information. Employers may even recover attorneys' fees associated with such counterclaims.
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This article is presented for informational purposes only and is not intended to constitute legal advice.