Title: How can the U.S. government sue a business? | HowStuffWorks
Headings: How can the U.S. government sue a business?
How can the U.S. government sue a business?
Antitrust Lawsuits
False Claims Lawsuits
Who Can Sue?
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Author's Note: How can the U.S. government sue a business?
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Content: A defense contractor reports false test results on the performance of its armed personnel carriers, and the malfunctioning vehicles cost the U.S. Army millions in repairs
A hospital files millions of dollars in Medicare claims for unnecessary or nonexistent medical services
A research lab that received grant money from the National Science Foundation uses the money to pay for an employee trip to Disney World [source: TAF Education Fund]
A popular provision of the False Claims Act is something called qui tam, better known as the "whistleblower" law. A whistleblower is an employee of a company who comes forward with proof of the company's fraudulent activities. Under the qui tam provision, a whistleblower sues the company on behalf of the federal government [source: TAF Education Fund ]. If the company is found guilty, both the whistleblower and the government receive damages. In 2012, British drugmaker GlaxoSmithKline paid the U.S. government $3 billion in a combined criminal and civil case instigated by six whistleblowers [source: Thomas ]. Also in 2012, the DOJ sued Bank of America thanks to information from a whistleblower who detailed how the bank lied about the risk of mortgages it sold to investors, including the government-owned Fannie Mae and Freddie Mac [source: Stempel ].