Qui Tam Actions

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Did you know that QuiTam plaintiffs can now bring an action in state court on behalf of state and local government, as well as themselves, to recover monies paid as a result of false claims?

The adding of Article 13 of the State Finance Law (see Senate Bill S-02108) permits a citizen who has "direct and independent knowledge" of a false claim being submitted to the state or local government to sue on behalf of the government as well as him or herself. If the suit is successful, the citizen can be eligible for a share of 35% of the award if the government declines to take over the case, to a max of 25% if the government pursues the case. The award consists of 3 times the damage the State suffered plus $6,000 to $12,000 as a civil penalty. The Attorney General will promulgate rules to effectuate this law and the civil penalty will most likely be calculated on a pertransaction, not per-claim basis. This will boost awards significantly.

Please see full article below for more information.

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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.

© Ruskin Moscou Faltischek | Attorney Advertising

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