The best way to minimize exposure from a False Claims Act lawsuit is to prevent one.
Qui tam whistleblowers have common personality traits. They are rarely, if ever, “white knights” dutifully reporting injury to the federal treasury. More often than not, they have an axe to grind. Perhaps they were passed over for a promotion. Or a corporate reorganization reduced their perceived role or influence. Other whistleblowers simply hold the misguided belief that their particular view of a regulatory obligation or contractual provision is the only reasonable interpretation.
At Vorys, we have experience dealing with whistleblowers. By responding to internal complaints and conducting our own internal investigation of the issues, we have headed off numerous False Claims Act lawsuits before they were ever filed or unsealed. And even if the whistleblower is resolute about initiating and pursuing litigation, by conducting our own investigation, we get a head start in understanding the relevant documentation, formulating a defense, and explaining to the Department of Justice why it should not intervene in the lawsuit. If your organization has a suspected whistleblower, we can help.