What is the False Claims Act?

The False Claims Act is a federal law that allows whistleblowers to bring legal action against companies or individuals who commit fraud against the government. The law was first enacted in 1863 to combat fraud against the military during the Civil War. In Pennsylvania, the False Claims Act has been expanded to include fraud against the state and its citizens. This law allows the Attorney General (AG) of Pennsylvania to bring a lawsuit against a person or business that has submitted false or fraudulent claims for payment or approved a false or fraudulent request for payment from the government. The AG can also bring a case against those who illegally retain money or property for which the government has paid. Anyone who knows of a violation of the False Claims Act can become a whistleblower and receive a portion of the money recovered by the state as a reward. The whistleblower must file a qui tam lawsuit which is a legal action that allows the informant to be a “real party in interest.” The informant can receive up to 30% of the money recovered from the lawsuit. The Pennsylvania False Claims Act is an important tool to help the government fight fraud and abuse. It gives citizens the ability to report fraudulent activity and potentially receive a reward. It is important to note that the False Claims Act does not cover any reportable violations that do not involve government funds.

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What is the False Claims Act?

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