Host Jonathan Porter welcomes Husch Blackwell partner Kate Ledden to the podcast to discuss the often-contentious issue of relators’ attorneys’ fees in False Claims Act cases. With fee awards sometimes reaching millions of dollars, this topic has significant financial implications for defendants and raises important questions about what constitutes “reasonable” compensation for qui tam counsel.
Host Jonathan Porter welcomes Husch Blackwell partner Kate Ledden to the podcast to discuss the often-contentious issue of relators’ attorneys’ fees in False Claims Act cases. With fee awards sometimes reaching millions of dollars, this topic has significant financial implications for defendants and raises important questions about what constitutes “reasonable” compensation for qui tam counsel.
We begin by exploring the statutory framework for fee-shifting under the False Claims Act. Kate explains when relators are entitled to attorneys’ fees, what it means to “successfully litigate” a case, and why Congress departed from the American Rule to incentivize whistleblowers to bring qui tam actions. She also clarifies that fee awards come on top of the relator’s share of the government’s recovery.
Next, we examine how courts determine what constitutes “reasonable” attorneys’ fees using the lodestar method. Kate walks listeners through the two core inputs—reasonable hours and reasonable hourly rates—and explains why courts favor this objective, reviewable approach that approximates what a paying client would pay in comparable hourly-billed litigation. We discuss the unique challenge in False Claims Act cases where complexity can drive the lodestar calculation to enormous levels.
Our conversation then turns to the controversial practice of multipliers and enhancements to the lodestar calculation. Kate explains when courts might adjust the lodestar product up or down, why such adjustments are rare, and why courts resist multiplying lodestar based on complexity or risk arguments that relators’ attorneys commonly advance.
We examine the recent Ninth Circuit decision in United States ex rel. Thrower v. Academy Mortgage Corp., where a district court awarded $8.5 million in attorneys’ fees (including a 1.75x multiplier) on a $38.5 million settlement. Kate discusses why the Ninth Circuit reversed, finding the district court abused its discretion by enhancing lodestar for an “exceptional result” that was already captured in the reasonable hours and rates calculation.
We close with practical guidance for litigating attorneys’ fees issues going forward. Kate outlines concrete strategies for the defense, including how to scrutinize time records, challenge hourly rates, and push back against improper multipliers in light of Thrower’s guidance.
Jonathan Porter | Full Biography
Jonathan focuses on white collar criminal defense, federal investigations brought under the False Claims Act, and litigation against the government and whistleblowers. He draws on his experience as a former federal prosecutor to guide clients in sensitive and enterprise-threatening litigation. At the Department of Justice, Jonathan earned a reputation as a top white-collar prosecutor and trial lawyer and was a key member of multiple international healthcare fraud takedowns and high-profile financial crime prosecution teams. He serves as a vice chair of the American Health Law Association’s Fraud and Abuse Practice Group and teaches white collar crime as an adjunct professor of law at Mercer University School of Law.
Kate Ledden | Full Biography
Kate draws on extensive knowledge of both healthcare law and the court system to represent healthcare clients in complex litigation. Kate began her legal career with nearly ten years in federal district courts, where she worked directly with judges on all aspects of trial preparation. She came to know federal procedure backwards and forwards—and she also knows where cases can go wrong. With an inside perspective on how best to succeed in court and at trial, Kate aims to set clients up for the best result from the very beginning of their cases. Kate joined Husch Blackwell out of a desire to return to client advocacy. She’s known as someone who wears her passion on her sleeve, investing deeply in client matters, and has a reputation as an excellent listener and skilled writer who can compellingly convey complicated legal matters. Kate handles high-stakes, complex commercial litigation as well as healthcare regulatory matters, helping clients avoid litigation in the first place. While she has worked with a variety of industries, Kate continues to focus on healthcare and primarily assists healthcare clients, who immediately sense her passion for their field.