And You Thought a One-Third Contingency Was High

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On Tuesday a federal court in Illinois awarded fees of $200,000 to attorneys for a whistleblower in a False Claims Act action.  Not impressed?  Well, consider this: the whistleblower got a little less than $30,000.  Figured on a contingency basis, that’s an 87% fee.

As usual, there’s more to it than these few figures.  Back in early 2006 the whistleblower filed a qui tam suit against 17 defendants alleging violations, including retaliation, of the Anti-Kickback Statute, federal and state False Claims Acts, and state common law.  The defendants paid the federal government and Illinois $117,000 and $25,000, respectively.  The whistleblower’s $30,000 came out of those amounts.  So not only were the attorneys successful; they worked on the case for eight and a half years.

The case is U.S. ex rel. Hernandez v. Therapy Providers, 1:06-cv-00760 (N.D. Ill).

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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