The Whistleblower

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Whistleblower Protection | Whistleblower Rewards | Whistleblowers in Action

A study published in the New England Journal of Medicine found that the primary reason whistleblowers are willing to stick their necks out is because of personal integrity, followed by their interest in protecting the public’s health and safety.  Whistleblowers step forward, despite personal reasons not to, because they want to ensure pharmaceutical companies and corporations are held accountable. This role takes courage, dedication and fortitude.

Deciding to file a qui tam claim can be a difficult decision, however, in addition to the satisfaction one feels from “doing the right thing,” there are rewards when the claim is successful and whistleblower protection under the False Claims Act is there to protect you. 

Many people who step forward and become whistleblowers do so because they feel the risks are worth taking, to save lives, to protect the innocent and to right a wrong. It is because there are risks involved in filing a qui tam claim that the federal False Claims Act provides both whistleblower protection and a substantial reward for the “relator” (whistleblower who files a qui tam claim).

Whistleblower Protection

If you have knowledge of fraudulent activity by a business entity, whether you are an employee or not, you can file a qui tam action under the False Claims Act. Seeking legal counsel is advised in order to make sure that your qui tam claim is handled properly and legally.

Although there are many risks involved with becoming a whistleblower, it is important to know that under these stressful circumstances, the law is on your side. The False Claims Act is tailored to protect whistleblowers from suffering certain repercussions for bringing a qui tam action. The initial claims are filed under seal with U.S. government attorneys and strict confidentiality is maintained until the qui tam claim is either resolved through the government intervention or the claim is not accepted by the government, in which case the whistleblower has the option of proceeding with an un-sealed, publicized qui tam action or letting the claim drop without disclosing the identity of the whistleblower. If a whistleblower’s identity is discovered and an employer retaliates by  wrongfully firing, demoting, suspending or threatening the whistleblower for filing a legitimate qui tam lawsuit, the law will ultimately provide for reinstatement and double back pay amongst other reimbursements.

Being an office whistleblower, a federal whistleblower, or an IRS whistleblower often costs individuals their jobs and their reputations, and the punishments doled out by these companies are just as illegal as the fraudulent activities which inspire the whistleblower cases. Justice is often found in the end with the whistleblower being very well compensated for their efforts to hold these companies accountable.

Protection for the Federal Whistleblower

Under the Whistleblower Protection Act, government employees are offered whistleblower protection. The whistleblower act prohibits retaliation against public employees who come forward with illegal or improper government activities.

Whistleblower Rewards

The federal False Claims Act provides that whistleblowers will be rewarded with a percentage of the money that the government is awarded as the result of a qui tam lawsuit. If the government joins the qui tam case this percentage ranges from 15 to 25 percent. If the government does not join the lawsuit but the relator successfully brings suit against the defendant, then the whistleblower is rewarded 25 to 30 percent of the recovery amount.

These amounts help to cover the losses incurred by pursuing the decision to be a whistleblower. To date, the rewards paid to whistleblowers are in excess of $1.6 billion.

Whistleblowers in Action

Whistleblower Tells 60 Minutes about GSK’s
Bad Manufacturing Practices at Puerto Rico Plant

Cheryl Eckard
Concerns for public safety motivated Cheryl Eckard to file a whistleblower lawsuit against GlaxoSmithKline (GSK) shortly after she was fired from her job as global quality assurance manager for the company.  Ms Eckard alleged that GSK’s Cidra, Puerto Rico, plant was manufacturing adulterated medication, including the popular antidepressant Paxil and diabetes drug Avandamet.  For about eight months in 2002, Ms. Eckard reported her concerns to her supervisors and GSK executives but her warnings fell on deaf ears. She was later fired.

Cheryl Eckard then voiced her concerns to the Food and Drug Administration, which prompted an investigation and subsequent raid of the Puerto Rico plant. Federal investigators confirmed Ms. Eckard’s allegations when they found flagrant manufacturing violations at the Cidra plant, which was promptly shut down.  On October 26, 2010, seven years after becoming a whistleblower, GSK agreed to settle the lawsuit for $750 million. Ms. Eckard will be awarded a record $96 million for her involvement in the qui tam case, the highest amount an individual whistleblower has received in history under the federal False Claims Act.

John Kopchinski
Gulf War veteran and former sales representative for Pfizer Inc., John Kopchinski, began a whistleblower lawsuit against the world's largest drug maker in 2003. Kopchinski was appalled by the tactics Pfizer used to sell the pain medication Bextra and filed a qui tam lawsuit against Pfizer for Medicare fraud. The suit resulted in Pfizer being ordered to pay $2.3 billion in September 2009, which included $1.8 billion in criminal and civil penalties. Pfizer also pled guilty to a felony charge for promoting Bextra and 12 other drugs for unapproved uses and doses.

Kopchinski was dismissed from Pfizer for raising his concerns with the company and went from earning around $125,000 yearly to living off of his retirement and finally finding employment with an insurance company for around $40,000. Kopchinski knew he was taking a risk by filing this qui tam suit. In 2009, the risk paid off. Because he blew the whistle on Pfizer’s illegal activity and fraud, Kopchinski will be getting more than $50 million of the record penalty that Pfizer was ordered to pay.

Cynthia Fitzgerald:
Cynthia Fitzgerald is responsible for filing what could become one of the largest whistleblower lawsuits to date. Her case, filed in 2003, names more than one dozen companies including Johnson and Johnson, Merck, and Becton Dickinson for improper sales practices and erroneous accounting, draining millions of dollars out of public programs such as Medicare.

When Cynthia Fitzgerald became a health care purchaser for Novation in 1998 she did things by the book and she expected her employer and colleagues to do the same. After uncovering what she called “systemic” medical-supply fraud, Fitzgerald decided to do something about it. For years, she continued to work at Novation but she was constantly at odds with what she believed were unethical and illegal practices. She was ultimately fired by Novation.

For now, Ms. Fitzgerald’ qui tam litigation remains unresolved.

Whistleblower Protection | Whistleblower Rewards | Whistleblowers in Action