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Whistleblower Lawyers: Protecting Employees Who Expose Fraud

File a Claim, Seek Reward & Avoid Retaliation

Whistleblowers play a vital role in exposing corporate misconduct, government fraud, and threats to public health and safety. By coming forward, employees and insiders provide critical information that can stop fraud, protect taxpayers, and safeguard the public.

Unfortunately, whistleblowers often face retaliation for speaking out. That is why federal and state laws, including the False Claims Act, provide whistleblowers with protections and potential financial rewards.

If you are considering exposing fraud, it is important to understand how whistleblower lawsuits work, the legal protections available, and why having an experienced whistleblower attorney is essential.

The False Claims Act and Qui Tam Lawsuits

The False Claims Act is the foundation of many whistleblower lawsuits. It allows individuals with knowledge of fraud against the government to file suit in federal court. Common examples include billing for services not provided, overcharging on government contracts, or selling defective products to government agencies.

If the government recovers funds as a result of the lawsuit, the whistleblower may receive between 15% and 30% of the recovery. This provides a strong incentive for insiders to come forward with credible evidence of fraud.

When you decide to file a whistleblower claim against an employer, you may be putting your career on the line. This should not deter you, but it makes it essential to hire the right counsel to lead you through the process. An attorney well-versed in employment law can guide you, help you draft documents and protect your rights as a whistleblower.

Whistleblower lawsuits, also known as “Qui Tam” lawsuits, are a kind of legal action brought against companies for defrauding the government. A Qui Tam lawsuit can be filed under the False Claims Act, a law that rewards whistleblowers when the government is successful in recovering funds lost to fraudulent activity. Common whistleblower complaints deal with issues surrounding the following:

What is a Whistleblower Lawsuit?

A whistleblower lawsuit is a legal claim filed by an employee, contractor, or insider who has information about unlawful activity. These lawsuits may be filed under federal or state whistleblower statutes, depending on the type of wrongdoing.

In recent years the most common cases of fraud have been seen in the healthcare, finance and defense sectors, though fraud may occur in any industry where large government contracts are awarded. The legal process generally looks something like the following:

  • Qui tam (whistleblower) lawsuits must be filed within six years of the alleged fraudulent activity
  • A plaintiff with information leading to the recovery of funds must file the lawsuit, not any third party
  • Lawsuits are filed confidentially and under seal, so the defendant will not immediately be aware a lawsuit has been filed.
  • When the seal is lifted the defendant will usually have a chance to settle out of court.

An individual who comes forward and exposes this type of corporate fraud may be eligible to receive between 15 and 30 percent of the overall recovery of a successful Qui Tam lawsuit. The recovered amounts can be millions of dollars, and may amount to double or triple the amount the government was defrauded.

Qui Tam cases are a complex but powerful way for citizens and employees to help the government end several kinds of fraud, and recover lost taxpayer money. If you work for a company that is misappropriating government money, and have question on how to proceed, contact The Lyon Firm.

Joe Lyon is a highly-rated lawyer representing plaintiffs nationwide in a wide variety of workplace fraud claims. For more information about whistleblower lawsuits, or a free consultation, call today.

Whistleblower Protections Against Retaliation

One of the biggest fears whistleblowers face is retaliation by their employer. Federal and state whistleblower laws protect employees from:

  • Wrongful termination

  • Demotion or denial of promotions

  • Harassment or intimidation

  • Pay cuts or reduced benefits

  • Blacklisting within an industry

If retaliation occurs, whistleblowers may be entitled to remedies such as reinstatement, back pay, compensatory damages, and attorneys’ fees.

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ABOUT THE LYON FIRM

Joseph Lyon has 17 years of experience representing individuals in complex litigation matters. He has represented individuals in every state against many of the largest companies in the world.

The Firm focuses on single-event civil cases and class actions involving corporate neglect & fraud, toxic exposure, product defects & recalls, medical malpractice, and invasion of privacy.

NO COST UNLESS WE WIN

The Firm offers contingency fees, advancing all costs of the litigation, and accepting the full financial risk, allowing our clients full access to the legal system while reducing the financial stress while they focus on their healthcare and financial needs.

What is the False Claims Act?

The False Claims Act rewards whistleblowers whose lawsuits recover government funds, and furthermore, provides job protection to whistleblowers because of the professional and personal risks involved in exposing fraud against the government. Whistleblower lawsuits are also known as Qui Tam lawsuits, and can be filed against companies for defrauding the government.

Under the False Claims Act a private citizen may sue an individual or a business for defrauding the government, and recover funds on the government’s behalf. This kind of lawsuit is filed confidentially to protect the whistleblower, and to give the Justice Department time to investigate the allegations.

Government investigations into Qui Tam cases can take years. After a whistleblower and their attorney file a claim with the Justice Department, the government investigates the allegations, and will decide whether it will intervene in the case to recover government money.

In a whistleblower settlement, you could receive as much as 30 percent of the funds recovered through your claim. Claimants usually have a better chance of success if the government joins the lawsuit.

Whistleblowers have the option to pursue these cases without government assistance, though the chances of success in the suit are much higher when the government joins the case. Most successful whistleblower cases are resolved through settlement negotiations. Common defendants in government fraud cases include:

  • Hospitals
  • Medical device companies
  • Nursing homes
  • Individual physicians
  • Defense Contractors
  • Medical Laboratories
  • Investment Banks
  • Money Managers
  • Pharmaceutical companies
  • Healthcare affiliates

How Are Whistleblowers Lawsuits Settled?

The amount of the whistleblower reward depends on several factors, including the quality of the case as presented to the Justice Department. If the government chooses to intervene in the case and recovers funds through a settlement or a trial, the whistleblower plaintiff is entitled to 15 to 25 percent of the recovery amount. If the Justice Department elects not to participate and the plaintiff proceeds alone, the maximum award increases to 30 percent.

Because qui tam cases typically involve large government contracts in healthcare, finance or defense, the recovery amounts can be huge, and in turn the awards are quite large. 

Many companies have taken advantage of government programs and contracts relating to health care, defense and national security, food safety and inspection, federally insured mortgages, highway funds, and agricultural subsidies.

The rate of trying successful fraud cases has accelerated in recent years. Around 60 percent of whistleblower settlements in the last 30 years have come from cases in the last 8 years.

If the government prevails in recovering funds in a case, the whistleblower can receive up to 30 percent of the recovery amount.  Whistleblowers filed hundreds of lawsuits in 2024, and the government awarded plaintiffs millions in a variety of cases.

Government Fraud Lawsuits

Government Fraud lawsuits often involve healthcare (Medicare and Medicaid), financial security, technology and defense contractors working for different military bodies. Fraud claims also involve contractors winning large infrastructure projects, and institutions that receive large amounts of federal research funding under false pretenses.

Coming forward with information as a whistleblower and filing a lawsuit takes courage. But since the action of coming out against an employer has serious risks, and employees may be putting their career on the line to expose fraud, plaintiffs are covered under the False Claims Act and may be awarded in successful cases.

A whistleblower plaintiff can expect to receive between 15 and 30 percent of the overall recovery of a successful fraud lawsuit. In some cases this can amount to millions of dollars. Whistleblower lawsuits filed against government contractors may involve the following kinds of fraud:

  • Illegal kickbacks
  • Government regulatory violations
  • Falsifying data for funding
  • Instances of gross overbilling
  • Products not manufactured in accordance with specifications
  • Making false statements to win a contract
  • Providing products that fail to comply with environmental standards
  • Overstating the labor cost for a project
  • Destroying records or receipts

Whistleblower Tips & Rewards

The SEC established the Office of the Whistleblower in 2011 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The two largest awards have involved three individuals totaling $83 million, and to two individuals totaling almost $54 million.

The reward percentage for each plaintiffs depends on several factors, and it is prudent to hire a whistleblower protection attorney to maximize the payout from the agency, as well as protect oneself from company retaliation. Payouts generally depend on the significance of the information received as well as the level of cooperation by the individual whistleblower.

Common Types of Whistleblower Lawsuits

For many employees and whistleblowers, coming forward and filing a qui tam lawsuit takes courage, and has its own risks involved in the process. Employees may put their entire career on the line to expose fraud. As a result, under the False Claims Act, plaintiffs are awarded in successful whistleblower lawsuits.

Recovered funds for government agencies usually involve the following kinds of fraud:

  • Kickbacks
  • Off-label marketing
  • FDA regulation violations
  • Medicare fraud
  • Financial fraud claims
  • Overbilling
  • Products not manufactured in accordance with contract specifications
  • Charging for new parts and selling used parts
  • Making false statements to win a contract
  • Providing products that fail to comply with environmental standards
  • Overstating the labor cost for a project
  • Destroying contract records
  • Tax Fraud—unreported income, unauthorized tax deductions and other tactics
  • Real Estate Fraud—illegal property acquisition
  • Insurance Fraud—filing duplicate or undocumented insurance claims for Medicare or Medicaid reimbursements
  • Overbilling healthcare services

Preventing Employer Retaliation

Once a person has evidence of fraud against the government and decides to take action, they are advised to find an experienced lawyer to assist in the complex process. The work done by your lawyer will be essential to the success of the case and will be a major factor in determining whether you will receive a reward, and the amount of the reward.

An award for exposing fraud is alluring; however, it is important to consider the implications of coming forward against your employer. Whistleblowers often pay a price for doing what they think is the right and ethical thing to do.

Employees who expose their company may be fired, demoted and discriminated against at work for speaking out. Such retaliation by your employer is illegal. If you experience this kind of behavior, a Whistleblower attorney can help by filing a discrimination or wrongful termination lawsuit.

Why Whistleblower Lawsuits Are Important

Whistleblower lawsuits not only reward individuals but also protect the public from fraud and abuse. In recent decades, whistleblower actions have recovered tens of billions of dollars for taxpayers and exposed dangerous corporate misconduct.

By filing a whistleblower claim, individuals can:

  • Stop ongoing fraud or illegal activity

  • Hold powerful corporations accountable

  • Protect taxpayers and consumers

  • Obtain financial rewards for their bravery

Attorney Joe Lyon investigating Whistleblower Claims

Why Hire The Lyon Firm?

Whistleblower lawsuits are complex, often involving federal agencies, corporate defendants, and sensitive information. These cases require legal skill, confidentiality, and aggressive advocacy.

The Lyon Firm has extensive experience representing whistleblowers in False Claims Act lawsuits, government fraud cases, and employment retaliation claims. Clients choose The Lyon Firm because of the following:

  • The firm understands the complexities of whistleblower and qui tam litigation

  • Experience in healthcare, defense contracting, financial fraud, and government compliance cases

  • Commitment to protecting whistleblowers from retaliation

  • Confidential consultations to evaluate the strength of your claim

  • Contingency fee representation—you pay nothing unless the case succeeds

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Whistleblower Lawsuits FAQ

Do I need a Whistleblower Attorney?

It is wise to consult with an attorney before you file a complaint against a defendant in a Qui Tam lawsuit. A whistleblower lawyer can assist plaintiffs in filing the relevant materials in a timely manner, work to obtain the most possible compensation, and protect plaintiffs against employer retaliation.

How Do I protect Myself Following a Fraud Complaint?

After filing a complaint against an employer or individual, highlighting fraudulent activity, the next step is to fight for rightful compensation, and protect yourself against employer retaliation. A whistleblower attorney can help make sure this does not happen.

What is a Qui Tam Lawsuit?

A qui tam action is a lawsuit confidentially filed under seal in federal district court in accordance with Ohio and Federal Civil Procedure. A copy of the whistleblower complaint, with a written disclosure statement of all material evidence and information must be filed, in camera and under seal. The complaint and its contents is kept confidential until the seal is lifted. The complaint is not served on the defendant.

What is the False Claims Act?

The False Claims Act allows persons and employees with evidence of fraud against federal programs or contracts to sue the wrongdoer or employer on behalf of the United States government.

In whistleblower lawsuits, the government may intervene and join the legal action. If the government declines, the private plaintiff may proceed with an attorney.

What Are some recent whistleblower settlements?

Notable Whistleblower Settlements (2024–2025)

  • A federal judge ordered CVS Health’s pharmacy benefit manager, CVS Caremark, to pay nearly $290 million for overcharging Medicare on prescription drugs. The penalty includes a damages trebling under the False Claims Act, plus a civil fine. 
  • Walgreens agreed to pay $300 million to settle allegations of filling invalid opioid and controlled substance prescriptions and seeking reimbursement through federal healthcare programs. The case stemmed from four whistleblower lawsuits by former employees.
  • A whistleblower lawsuit filed in 2018 against the Houston Housing Authority (HHA) concluded with a $600,000 settlement—with $500,000 allocated to the U.S. government under the False Claims Act and $100,000 awarded to the whistleblower 
  • In one of the largest IRS-related whistleblower matters, Credit Suisse will pay $511 million to resolve allegations of facilitating U.S. tax evasion via undisclosed accounts. Whistleblowers may receive up to $150 million, making it one of the largest whistleblower awards in IRS history.
  • The family of whistleblower John Barnett—who raised safety concerns about Boeing 787 aircraft and tragically died—is reported to have reached an undisclosed settlement with Boeing. 

Learn More About related practice areas

Whistleblower Lawsuits & Commercial Law