Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Tax Law
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 …