The False Claims Act stipulates that whistleblowers be rewarded with a percentage of the money that the government recovers as a result of their qui tam lawsuits. This provision helps encourage people to assist the government in stopping Medicare fraud, defense fraud and other kinds of fraud despite the effect whistleblowing might have on their jobs and personal lives.

Under the False Claims Act the government may recover up to three times the amount of money it lost as a result of the defendant's fraud. The relator's share is calculated based upon the amount the government recovers, not the actual losses.

A number of factors determine how much money a whistleblower (or "relator") will receive if the government is able to recover money from the defendant. If the government joins the case, the relator is entitled to at least 15 percent but not more than 25 percent of what the government recovers. If the government declines to join the case and the relator proceeds against the defendant anyway, the relator is entitled to at least 25 percent but not more than 30 percent of the money the government recovers.

In cases that do settle before trial, the settlement is typically less than three times the loss. After all, if the government demands that the defendant pay the maximum possible amount, the defendant might as take a chance and go to trial. If you have a good case, you should expect that it will settle for something less than triple the amount of the government's losses.

For examples of some of the biggest settlements involving qui tam lawsuits brought by John R. Phillips, Mary Louise Cohen and the firm, see "Major cases."