Take Away: California has recovered over $2 billion under the State’s False Claims Act since 2001, according to data obtained from the State Attorney General’s Office.
Enacted in 1987, the California False Claims Act (“CAFCA”) is one of the oldest qui tam statutes in the country. [1]
The CAFCA empowers private citizens (called “relators”) to file suit against any person or business that “[k]nowingly presents or causes to be presented [to the state or any political subdivision] . . . a false claim for payment or approval.” [2] CAFCA actions may also be initiated by California’s Attorney General or by the prosecuting authority for a political subdivision. [3] Violators of the Act are liable to the State for treble damages and civil penalties. [4]
To encourage whistleblowing, the CAFCA rewards successful relators with up to 50% of the State’s recovery. [5] The size of the “relator’s share” typically depends on whether the relator or the State prosecutes the case. [6] The relator’s share may be reduced if the relator participated in the fraud. [7]
Data recently obtained from the State Attorney General’s Office reveals that the CAFCA has yielded large recoveries for the Golden State. [8]
| Recoveries and Filings under California’s False Claims Act, Cal. Gov. Code § 12650, et seq. | |||||
| Year | Amount the State recovered under the California’s False Claims Act | Amount deposited into the State’s False Claims Act Fund | Number of cases filed by private individuals | Number of cases... | |
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