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The Price Of Private Enforcement Under The False Claims Act, David Y. Kwok
The Price Of Private Enforcement Under The False Claims Act, David Y. Kwok
David Y Kwok
Private plaintiffs and their attorneys are motivated at least in part by monetary awards, but what is the appropriate award for litigation? I consider the case of the False Claims Act, through which the U.S. government recovers losses due to fraud by paying a bounty to whistleblowers. These whistleblowers and their attorneys generally receive a minimum 15% bounty in successful cases. Utilizing a data set of over 3000 fraud cases, I present observational evidence that whistleblowers are reluctant to bring cases valued under $440,000 and that they would be more likely to do so given a higher bounty percentage. This …
Does Private Enforcement Attract Excessive Litigation? Evidence From The False Claims Act, David Y. Kwok
Does Private Enforcement Attract Excessive Litigation? Evidence From The False Claims Act, David Y. Kwok
David Y Kwok
Private litigation can help correct wrongs, but the right to litigate can also be abused. The structure of the U.S. judicial system can make it difficult to determine how frequently private parties misuse litigation. Utilizing a new data set of False Claims Act litigation, I conduct a systematic evaluation of private litigation in the fraud context. I find law firms generally pursue a cooperative strategy with the Department of Justice rather than adopting abusive litigation practices. This suggests that private litigation may effectively complement public enforcement and that such litigation may be helpful in other areas of law.