Qui Tam (Whistleblower) Lawsuit Loans Help Plaintiffs
Qui tam lawsuits permit private individuals to sue on behalf of the United States Governments to recover money which was fraudulently obtained. Also known as “whistleblower” lawsuits, these cases can take many years to resolve. And many whistleblowers encounter financial strain while the cases progress through the system. This is especially true if the whistleblower is fired in retaliation from his/her employment. Whistleblower lawsuit loans are a financial cash flow solution which is tailor made for this situation.
Whistleblower Lawsuit Basics
In 1863, the False Claims Act (FCA) was passed to fight against contractor fraud during the Civil War (some things never change). Today, the FCA remains a way for the government to combat fraud by individuals and companies doing business with the federal government.
What is unique about the FCA is that it authorizes private citizens to bring suit on behalf of the United States. As a relator, a private entity brings the action under the FCA under the qui tam provisions and shares in any monetary recovery.
Qui tam actions originally developed centuries ago in England. Yet they continue on today. The purpose is to deter fraud and incentivize whistleblowers with financial gain.
Common qui tam cases might include blowing the whistle on companies committing fraud in:
- Health care and prescription programs
- Medicare or Medicaid benefits
- Defense or other contractor engagements
- Securities and commodities
- Financial services
Legal System Shortcomings
Qui tam actions are brought in the very same courts that must hear literally thousands of cases every year. It is no surprise that lawsuits can take many years to resolve. This is especially true for qui tam actions since the defendants are not simply insurance companies whose business it is to settle lawsuits. Instead, qui tam defendants are financially strong companies with every incentive to dig in and fight the charges.
As these companies hunker down for a legal battle, many whistleblowers encounter financial strain. This is especially true if the whistleblower’s employment has been terminated. Bills keep coming every month and the struggle may add even more stress to an already stressful situation. A whistleblower lawsuit loan was designed for this particular set of circumstances.
What is a Whistleblower Lawsuit Loan?
A whistleblower lawsuit loan provides an opportunity for qui tam relators to secure financial support from a lawsuit funding company. Also known as qui tam settlement loans, these transactions advance a portion of a future settlement prior to the case’s resolution. In return, a funding company receives a portion of the recovery – the amount dependent upon how long the case takes to resolve.
Although these specialty finance contracts are called “loans” there are some distinct differences. First, while traditional loans imply repayment at some point in the future, whistleblower lawsuit loans are only repaid if the case is successful and money recovered.
Second, because the agreement is actually a partial transfer of property rights in the settlement, qui tam loans are deemed “non-recourse” funding. That is, the funding company cannot pursue the relator personally for repayment. The advance must be repaid from the lawsuit proceeds. If there are no proceeds, then there is no repayment. IF THE CASE IS LOST, A WHISTLEBLOWER LAWSUIT LOAN IS NOT REPAID.
If You Have Any Questions, Call 888-964-2224
Getting Started with a Whistleblower Loan
If you are a whistleblower and are involved in a qui tam case, you can apply for a whistleblower lawsuit loan from Fair Rate Funding. If you need cash now while waiting for your case to resolve, we provide qui tam settlement funding to support you while you wait.
You can then relax and allow Fair Rate Funding to work for you. We routinely provide lawsuit settlement funding for whistleblower cases in as little as 24 hours of receiving the paperwork from your attorney.
We provide settlement funding for qui tam lawsuits for the following states: Alabama, Alaska, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming and the District of Columbia.
Thank you for choosing Fair Rate Funding.