IT’S EASIER TO HAVE A WHISTLEBLOWER COMPLAINT THAN YOU THINK

Contractors absolutely must know the environment in which they operate.  On the business side, this means knowing about acquisition cycle times, relationships, available budgets and other items that, successfully navigated, can make companies money.  On the compliance side this means understanding who may try to take some of that money away and how they operate. Successfully navigating those waters requires a much different set of skills.  A recent Allen Federal Google search on “federal contract qui tam” actions showed that nine out of the top ten search results were of the “how to” or “let us help you” variety.  Only one was from a law firm offering defense services.  One advertisement from a plaintiff attorney site led with the statement “Whistleblowers have won millions by reporting fraud.”  Another says “The public depends on whistleblowers to keep government contractors honest,” and then follows up with “Corporate employees and other insiders can earn significant monetary rewards for blowing the whistle on fraud in connection with government contracts or grants.”  Disappointed in your 401(k)?  File a whistleblower suit!  Contractors need to be keenly aware of the lure of easy money being dangled by plaintiff’s attorneys as an incentive to attract anyone with a grudge against the company.  Even cases that are ultimately resolved in the company’s favor can cost it millions in legal fees and lost productivity.  While there is no iron-clad way to prevent someone from filing a whistleblower suit, keeping the lines of internal communications open is an identified best practice.  Make sure that you have a way for employees concerns to be expressed – and taken seriously.  Don’t assume your employees know about changes in policy or practice.  Be open and up front with information your people need to know not only so that they can do their jobs, but to ensure that they know they’re valued and part of the team.  Plaintiff’s attorneys are just looking for the proverbial drop of blood in the water to file a suit.  Be aware of that environment and take action accordingly.