Receiving a letter from the US government stating that a qui tam action has been filed against your company can be a nightmare for the in-house attorney ordered to stay quiet about the case. With shareholder litigation on the rise, companies subject to the False Claims Acts need to consider all options. In-house counsel need to prepare themselves for a tug of war between the laws, penalties that exist for violating a seal, and those that require the disclosure of information to publicly traded companies.
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