The False Claims Act (FCA), also known as the “Lincoln Law,” is a federal law that allows individuals to file lawsuits on behalf of the government against individuals or entities that have defrauded the government. The law was enacted in 1863 during the Civil War to combat fraud against the government by contractors.
Under the FCA, individuals, known as “relators,” can file a lawsuit, also known as a “qui tam” action, on behalf of the government if they have evidence of fraudulent or false claims made to the government for payment or reimbursement. If the lawsuit is successful, the relator is entitled to a share of the recovery, which can range from 15 to 30 percent of the total amount recovered.
The FCA covers a wide range of fraudulent activities, including false claims for payment or reimbursement, fraudulent billing practices, and false statements made to the government in order to obtain funds or other benefits.
The FCA also includes provisions that protect whistleblowers from retaliation by their employers for reporting fraud or illegal activities to the government. This protection includes reinstatement, back pay, and compensation for any damages suffered as a result of the retaliation.
The FCA has been amended several times since its enactment, including amendments in 1986 and 2009 that strengthened the law’s provisions and increased penalties for violations. Many states have also enacted their own false claims acts, which provide similar protections and incentives for whistleblowers who report fraud against state governments.
