Colorado Laboratory Fraud Whistleblower Cases

If fraud took place in a laboratory where you worked, and you informed authorities about it, you are entitled to certain protections under both federal and Colorado state law. Employers frequently retaliate against whistleblowers, but doing so is a violation of a number of key employment and whistleblower programs protection laws.

If your employer took action against you because you informed authorities about fraudulent activities, you could be entitled to file a lawsuit against your employer. Through a lawsuit, you could pursue back pay, reinstatement, and other types of compensation.

The qui tam attorneys at The Wilhite Law Firm in Denver have the necessary knowledge and experience to help you enforce your rights under the law. Contact us today for a free, no-risk consultation to discuss the details of your case and evaluate your legal options.

What Is Laboratory Fraud?

Laboratory fraud involves deceptive practices and schemes such as intentionally falsifying lab results, deliberately distorting medical tests, fraudulently billing insurers, and influencing doctors to order tests that patients don’t need.

What Types of Laboratory Fraud Often Result in Whistleblower Cases?

Numerous types of fraud occur in laboratories. Some of the most common types include:

  • Charging Medicaid or Medicare for unnecessary patient testing
  • Charging Medicaid or Medicare for tests that a patient’s doctor did not order (For instance, some labs have fraudulently bundled COVID-19 tests with other respiratory tests a doctor did not order, and then billed the insurer for all of the tests as a bundle instead of the single COVID-19 test.)
  • Unbundling laboratory tests that are typically billed together and charging for each test
  • Using an unlicensed clinical laboratory to conduct lab tests
  • Charging Medicaid or Medicare for tests that an unlicensed lab technician performed

If you notice fraudulent activity occurring in the laboratory where you work, you should consult with an attorney to discuss your rights and protections under Colorado and federal whistleblower law.

Can I Get Compensation for Whistleblowing in Colorado?

Whistleblower showing documents as evidence being interviewed by the media.Successful whistleblowers can receive compensation for reporting fraudulent activities to the authorities. Whistleblowers who bring cases under the federal False Claims Act or Colorado’s Medicaid False Claims Act can file “qui tam” lawsuits against laboratories if they’re aware of fraudulent activities occurring in the lab, such as submitting false claims to government entities, including Medicaid. “Qui tam” means “in the name of the king,” and it enables people with evidence of fraud committed against federal programs to bring legal action on behalf of the government.

Under the Colorado Medicaid False Claims Act, laboratories that commit fraud against the government might be required to pay treble damages or three times the amount of harm they caused the state, in addition to fines for violations of the False Claims Act.

If the state chooses to intervene, the whistleblower could recover whistleblower rewards of a percentage of the eventual settlement, often between 15 and 25 percent. If the state opts not to intervene in the case, the whistleblower’s eventual reward could be even higher.

Certain variables can impact how much compensation a whistleblower can recover, including:

  • The quality of the information provided – Your reward will be partly determined by the accuracy and dependability of the information you provided. In some cases, whistleblowers reveal information that the federal government is already aware of. In that case, your reward could be lowered.
  • Whether you had legal assistance – Some whistleblowers hire attorneys to help them with the case. If the attorneys you hired ultimately helped the government build a case against the laboratory, then both you and your lawyers could potentially get a higher reward.
  • Whether you participated in the fraud – Even if you were complicit in the lab’s fraudulent acts, you are still encouraged to come forward with information and report it to the authorities. However, if you were a participant at some point, you could see a reduction in your reward.

What Happens If My Colorado Employer Retaliates for My Whistleblowing?

If your employer retaliates against you by firing you or taking other action because you blew the whistle on their illicit activities, then you are entitled to take legal action against them by filing a complaint.

Whistleblowers are protected by both Colorado state laws and federal laws, which are enforced by various departments under the U.S. Department of Labor, including the Occupational Safety and Health Administration (OSHA).

In Colorado, two primary laws protect whistleblowers from retaliation. The first law is Colorado Revised Statutes Section 24-50.5-103. This law prohibits employers from retaliating against whistleblowers who work for the state. There are a few exceptions. Public employees who knowingly disseminate false information or carelessly disregard the accuracy of the information are not protected, nor are employees who reveal information that is sealed from the public or confidential.

If you are a public employee who has been retaliated against for whistleblowing, you must first file a complaint against your employer. You have a 30-day window to do so, and the clock starts ticking on the day your employer took retaliatory action. If your complaint is denied, then you could be permitted to file a lawsuit.

The second law is Colorado Revised Statutes Section 24-114-102 (pg. 1911). This law protects whistleblowers who work in the private sector from retaliation. Employees in the private sector must attempt to tell their supervisor or another authority figure in their company about fraudulent activity before they make the information public.

Unlike public sector employees, whistleblowers who work for private companies can file a lawsuit against their employer for retaliating against them without needing to file a complaint first.

If your employer retaliates against you, you could be entitled to recover compensation. Colorado whistleblower laws offer you protections such as:

  • Reinstatement in a position at the same level you were at before
  • Double the amount of back pay, plus interest
  • Compensation for other specific losses you suffered due to your employer’s retaliatory action

You should consult with a whistleblower attorney before taking legal action. A knowledgeable qui tam attorney can help you with your complaint or whistleblower lawsuit, stand up for your rights in court, and pursue justice on your behalf.

Talk to Colorado Our Qui Tam Attorneys with Experience Handling Laboratory Fraud Cases

If you believe fraudulent activities are occurring in your lab, contact a whistleblower attorney at The Wilhite Law Firm in Denver today. We are ready to explain the rights and protections afforded to you by state and federal statutes and help you take legal action if your employer retaliated against you.

Contact our attorneys today for a free consultation.