State False Claims Acts

Given the False Claims Act’s tremendous success in rooting out fraud against the U.S. Government, more than twenty states have adopted their own, state-level versions of the statute. Like the federal act on which they are modeled, these state false claims acts generally authorize qui tam whistleblowers to bring lawsuits based on practices that involve cheating or defrauding the state, its political subdivisions or local governments (i.e., cities, counties, municipalities, and public authorities), or programs that receive state funds like Medicaid. They also offer rewards of 15% to 30% or more of the proceeds of the lawsuit to incentivize whistleblowers to come forward. They include:

• California (CA)
• Delaware (DE)
• Florida (FL)
• Georgia (GA)
• Hawaii (HI)
• Illinois (IL)
• Indiana (IN)
• Iowa (IA)
• Maryland (MD)
• Massachusetts (MA)
• Minnesota (MN)
• Montana (MT)
• Nevada (NE)
• New Jersey (NJ)
• New Mexico (NM)
• New York (NY)
• North Carolina (NC)
• Rhode Island (RI)
• Tennessee (TN)
• Virginia (VA)
• District of Columbia

Notably, New York’s false qui tam whistleblower false claims act is unique in that it authorizes whistleblowers to bring lawsuits based on tax fraud or tax underpayment, and not just other types of fraud against state and local government.

Other states have whistleblower laws that only cover claims relating to fraud against Medicaid or other state-sponsored healthcare programs. They include:

• Arkansas (AR)
• Colorado (CO)
• Connecticut (CT)
• Louisiana (LA)
• Michigan (MI)
• Missouri (MO)
• New Hampshire (NH)
• Oklahoma (OK)
• Texas (TX)
• Washington (WA)

It is not uncommon for qui tam lawsuits to include claims under both the federal False Claims Act and the corresponding state-level false claims act when the misuse of federal and state funds is involved. This is particularly true in cases involving the healthcare sector and Medicaid.

If you are aware of fraud against a state government, political subdivision, or state-funded healthcare or other program and would like to speak with an experienced whistleblower attorney, reach out to us for a free and confidential consultation.