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Relator Overview
According to Merriam-Webster’s legal dictionary, relators are those who bring a legal action on behalf of another.
The term “relator” is used in the context of whistleblower lawsuits. In simple terms, the relator is the whistleblower, or the person who brings legal action on behalf of the government.
In fact, according to the National Whistleblower Center, “relator” was the original term previously used to identify what are now known as “whistleblowers.” Originally, in the federal law allowing private citizens to sue on behalf of the government, the term relator was used. It wasn’t until modern times that the word whistleblower replaced relator.
The relator in a successful whistleblower lawsuit is an important role. Relators, commonly known as whistleblowers, bring cases of fraud being perpetrated on the government and, ultimately taxpayers, to light. Under federal law, relators are protected. Further, if the whistleblower lawsuit is successful, relators are entitled to a portion of the award.
It is important to understand what whistleblower lawsuits are and how they work if you plan to become a relator in a legal action on behalf of the government.
Whistleblower Lawsuits
Those who become aware of acts that defraud the government can take legal action on behalf of the government. These legal actions are called whistleblower lawsuits.
Common causes of whistleblower lawsuits include defrauding either Medicare and/or Medicaid and defense contractor fraud. Private citizens, often employees of companies committing fraud against the government, are an important part of the U.S. government’s effort to combat fraud and the waste of taxpayer dollars.
There are a number of ways a whistleblower lawsuit can go. A relator can initiate a whistleblower lawsuit against a company on behalf of the government. The government is considered the plaintiff in the action.
Once the whistleblower lawsuit is filed, the U.S. Justice Department can decide whether it wishes to intervene in the action and take over the case. If the Justice Department decides not to intervene, the relator can still proceed with the whistleblower lawsuit. In fact, the government intervenes in only a small percentage of whistleblower cases.
False Claims Act
Most whistleblower lawsuits are brought under the qui tam provisions of a federal law called the False Claims Act. Under this law, relators can file legal action on behalf of the government and are entitled to protection.
To help protect the whistleblower, the lawsuit is usually sealed and kept private even from the defendant in the case under the qui tam provisions of the False Claims Act. This helps protect the whistleblower, especially if they are still an employee of the defendant or work in the same field.
The False Claim Act also provides for hefty verdicts in the event a party is found guilty of defrauding the government. According to the National Whistleblower Center, penalties up to $10,000 for each false claim made against the government can be assessed. Considering that, for example, a medical center may have been making hundreds or even thousands of fraudulent billing claims to Medicare or Medicaid in one of these cases, the final amount can add up to millions of dollars.
Relator Protections
The False Claims Act provides protection to those who file a claim on behalf of the government. Under the Act, a relator who is an employee of the defendant company cannot be fired, demoted, harassed, or otherwise discriminated against because they filed a whistleblower lawsuit.
If a company is found to be violating these whistleblower protection provisions under the False Claims Act, they may be required to rehire the employee, pay double the back pay due to the employee, as well as their legal fees and for other damages they may have sustained because of the retaliation.
Relator Awards
If the whistleblower lawsuit is successful, the relator will likely be entitled to an award based on the amount of money recovered by the government for the fraud. Success can mean either a verdict or settlement. In either scenario, the actual award received by the relator depends on a number of factors, but generally, the award is between 15% and 30% of the verdict or settlement amount.
