False Claims Act / Lincoln Law
This act was in news with reference to the exposure of dubious manufacturing practices of Ranbaxy and subsequent penalty of the $500 million on the company. The whistleblower was Dinesh Thakur, who will now get $48 million for his whistle blowing venture.
The False Claims Act / Lincoln Law is an American legislation that imposes liability on persons and companies who defraud governmental programs.
As per this act, the Whistleblowers receive a portion (usually about 15–25 %) of any recovered damages. Claims under the law have typically involved healthcare, military, or other government spending programs, and dominate the list of largest pharmaceutical settlements. The US government has recovered nearly $22 billion under the False Claims Act b/w 1987 and 2008.
Ranbaxy was found to have violated good management practices, produced falsifying drug data and manufactured and distributed certain adulterated drugs manufactured at Indian production sites.