Under Seal
In the context of whistleblower lawsuits, “under seal” refers to a legal procedure where the initial complaint and all related documents are kept confidential by the court. This means the public, and even the company being accused of wrongdoing (the defendant), are not privy to the details of the case until the court lifts the seal.
There are two primary purposes for filing a whistleblower lawsuit under seal. Firstly, it protects the investigation. By keeping the complaint confidential, investigators have time to gather evidence and interview witnesses without alerting the defendant. This prevents the company from potentially destroying evidence or intimidating witnesses before a proper investigation can take place. Secondly, filing under seal aims to protect the whistleblower. Whistleblower retaliation is a serious concern, and keeping the case sealed helps shield the whistleblower’s identity until the case progresses further, offering some protection from potential repercussions from their employer.
The False Claims Act
Under the Federal False Claims Act, specific rules ensure confidentiality when a whistleblower files a new lawsuit. The act requires that a qui tam case be filed under seal in federal courts. This seal provision mandates that the case remain under seal for 60 days. This means the case is held confidentially while the government investigates. During this time, neither the defendant nor the plaintiff can discuss or confirm the existence of the qui tam case until the seal is lifted. Although the initial seal period is 60 days, it is typically extended by the government with a good cause, meaning the case can remain under seal for an extended period, depending on the court’s and the government’s decisions regarding the investigation.
The main goals of the under seal requirement implemented by the False Claims Act are to protect the investigation, defense, and employment of the whistleblower. Whistleblower retaliation is a serious concern, and keeping the case sealed helps shield the whistleblower’s identity until the case progresses further. This offers some protection and job security for the whistleblower.
