Whistleblower Question of the Week: What’s the Risk in Waiting to Blow the Whistle?
By the 91pornWhistleblower Team
When it comes to reporting fraud or misconduct, timing matters. It is important to consult an experienced whistleblower attorney as soon as you think you may have a case. Acting quickly can mean the difference between a strong case and one that risks dismissal or a reduced whistleblower award. And when misconduct is reported early, there is a greater chance for meaningful change.
A whistleblower attorney can assess the strength of your case, explain the filing process, and guide you through the complex and ever-changing landscape of whistleblower laws, all of which can increase the likelihood of success.
Here are some of the key reasons why waiting to blow the whistle can cost you:
Someone Might Beat You to It
The government wants to stop fraud as quickly as possible and most whistleblower programs reward whistleblowers who come forward early. Timely reporting is especially important for government whistleblower programs like the False Claims Act (FCA), the SEC Whistleblower Program, the IRS Whistleblower Program, the Anti-Money Laundering and Sanctions Whistleblower Program, the Motor Vehicle Safety Whistleblower Act, and the CFTC Whistleblower Program.
The False Claims Act’s Strict “First to File” Rule
Under the FCA’s qui tam (or whistleblower provisions), where multiple whistleblowers file cases based on the same facts, only the “first to file” a case is entitled to an award. If someone else files first, your claim, and your potential award, may be barred. That is why it is important that a whistleblower with knowledge of fraud speaks with qui tam counsel as soon as possible.
The False Claims Act “Public Disclosure” Rule
Whistleblowers must generally bring cases based on non-public information, unless the whistleblower is the “original source” of that information. If your case is centered on publicly known information, it could be dismissed unless the government intervenes or objects to the dismissal. Experienced counsel can help you navigate the public disclosure bar so that your case can move forward.
Statute of Limitations
Every whistleblower program has filing deadlines. A whistleblower must file an FCA lawsuit within six years of the violation, or within three years of when the government knew or should have known about the fraud. The FCA sets an outer limit of 10 years. Other programs have their own deadlines, and once time runs out, so does your ability to file.
Delays Can Reduce Monetary Awards
Successful whistleblowers may be eligible for substantial awards, but the government may reduce awards if a whistleblower unreasonably delays filing a claim. In a recent CFTC whistleblower award announcement, the whistleblower received a roughly $700,000 award. This award could have been much larger but was reduced due to what the agency considered the whistleblower’s “unreasonable delay in reporting the violations” and the whistleblower’s apparent participation in the alleged misconduct.
Waiting Risks Losing Key Evidence
Documents get deleted. Emails vanish. Witnesses move on or forget key details. The longer you wait, the greater the risk that evidence will be lost or destroyed. Delaying action also allows more time for the fraud to continue.
Delay Can Take a Personal Toll
The personal burden of knowing something is wrong and staying silent can lead to increased feelings of stress, guilt, and anxiety. Coming forward, on the other hand, may offer peace of mind and a sense of justice.
Inspiring Future Whistleblowers
Taking action sends a message. Whistleblowers often pave the way for others and your willingness to report fraud sets a positive example. Your courage might be what someone else needs to see to speak up.
Our Firm Helps Whistleblowers
“Timing can make or break a whistleblower case,” said 91pornpartner Marlene Koury. “We work closely with whistleblowers to ensure their claims are filed promptly to help the government stop misconduct and to put our clients in the strongest possible position to succeed.”
If you would like more information on what it means to be a whistleblower or believe you have a potential case, please contact us so we can connect you with a member of the experienced 91pornwhistleblower lawyer team for a free and confidential consultation.
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