Sec. 408. Whistleblower enforcement
351 words·~2 min read·
/bill/119/hr/8014/ih/section-408A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Any person who becomes aware, based on nonpublic information, that a covered entity has violated this Act may file a civil action for civil penalties, if prior to filing such action, the person files with the Director a written request for the Director to commence the action. The request shall include a clear and concise statement of the grounds for believing a cause of action exists. The person shall make the nonpublic information available to the Director upon request: If the Director files suit within 90 days from receipt of the written request to commence the action, no other action may be brought unless the action brought by the Director is dismissed without prejudice.
If the Director does not file suit within 90 days from receipt of the written request to commence the action, the person requesting the action may proceed to file a civil action. The time period within which a civil action shall be commenced shall be tolled from the date of receipt by the Director of the written request to either the date that the civil action is dismissed without prejudice, or for 150 days, whichever is later, but only for a civil action brought by the person who requested the Director to commence the action.
If a judgment is entered against the defendant or defendants in an action brought pursuant to this section, or the matter is settled, amounts received as civil penalties or pursuant to a settlement of the action shall be allocated as follows: If the action was brought by the Director upon a request made by a person pursuant to subsection (a), the person who made the request shall be entitled to 15 percent of the civil penalties. If the action was brought by the person who made the request pursuant to subsection (a), that person shall receive an amount the court determines is reasonable for collecting the civil penalties on behalf of the government.
The amount shall be not less than 25 percent and not more than 50 percent of the proceeds of the action and shall be paid out of the proceeds.