The Nevada False Claims Act: A Guide for Whistleblowers (NRS 357)
Nevada’s whistleblower law is called the Nevada Submission of False Claims to State or Local Government Act. It is codified at NRS Chapter 357 and is commonly referred to as the Nevada False Claims Act. Like the federal False Claims Act, Nevada’s law allows private citizens to file qui tam lawsuits when they have evidence that a person or company submitted false claims involving public money.
The Nevada False Claims Act applies to fraud against the State of Nevada and local government bodies within Nevada. That can include Nevada Medicaid, state agencies, counties, cities, public programs, and local government contracts. This page explains what NRS 357 prohibits, how a Nevada qui tam case works, how the law differs from the federal False Claims Act, what rewards may be available, and what retaliation protections apply.
What Is the Nevada False Claims Act?
The Nevada False Claims Act is Nevada’s state-law counterpart to the federal False Claims Act. It was enacted in 1999 and is designed to recover money lost when false or fraudulent claims are submitted to Nevada state or local government programs.
A private whistleblower (called a “relator”) may bring a Nevada qui tam case both for themselves and on behalf of the State of Nevada or the affected Nevada county, city, district, or other local government. The Nevada Attorney General may also bring the case directly or intervene in a case filed by a whistleblower.
The Nevada Supreme Court has repeatedly recognized that NRS Chapter 357 was modeled on the federal False Claims Act. In International Game Technology, Inc. v. Second Judicial District Court, 122 Nev. 132, 127 P.3d 1088 (2006) (“International Game Technology I”), the court relied on federal False Claims Act authority when interpreting Nevada’s statute. In James v. THI of Nevada at Cheyenne, LLC, 546 P.3d 208 (Nev. 2024), the court again looked to federal False Claims Act doctrine because Nevada’s statute was modeled after the federal Act.
The statutes are similar, but not identical. Nevada claims involve Nevada state or local funds. Federal claims involve federal money. Many cases, especially Medicaid cases, may involve both.
For broader whistleblower guidance, see our page for Las Vegas whistleblower attorneys.
What Counts as Fraud Under the Nevada False Claims Act?
The Nevada False Claims Act, NRS 357.040, makes it illegal to knowingly defraud the State of Nevada, or any Nevada county, city, district, or other local government out of money. The most common types of conduct that can create liability are:
- Submitting, or causing someone else to submit, a false or fraudulent request for payment to the State of Nevada or local government.
- Making or using, or causing someone else to make or use, a false record or statement that could influence the State of Nevada’s or local government’s decision to pay a claim.
- Failing to give back money that belongs to the State of Nevada or local government.
- Making or using, or causing someone else to make or use, a false record or statement to influence the State of Nevada’s or local government’s decision about whether money is owed to it.
- Concealing, avoiding, or reducing the amount of money owed to the government.
- Receiving a government payment by mistake, realizing it was wrong, and keeping the money instead of returning it within a reasonable time.
- Conspiring with someone else to do any of the above.
The Nevada Supreme Court has imposed limits. In Simonian v. University & Community College System of Nevada, 122 Nev. 187, 128 P.3d 1057 (2006), the court held that a state entity itself cannot be sued under the Nevada False Claims Act because the statute only allows lawsuits against people and private organizations, not against the state government.
In James v. THI of Nevada at Cheyenne, LLC, the Nevada Supreme Court recognized that an implied false certification theory can apply to a Nevada False Claims Act case. Under that doctrine, a provider may submit a false claim when a request for government payment implies compliance with an important legal or regulatory requirement material to payment, even if the provider does not expressly certify compliance in the payment request.
What “Knowingly” Means Under the Nevada False Claims Act
The Nevada False Claims Act requires that the person acted “knowingly,” but Nevada defines that word broadly. It covers three situations:
- Actual knowledge: the person actually knew a claim was false;
- Deliberate ignorance: the person deliberately avoided finding out whether a claim was true or false; and
- Reckless disregard: the person ignored obvious warning signs that a claim was false.
The law does not require proof that the person specifically intended to defraud the government. An honest mistake, ordinary carelessness, or a good-faith disagreement about what the law required is different and generally will not support a false claims case.
Differences Between Nevada and Federal False Claims Acts
The Nevada False Claims Act applies to fraud involving Nevada state or local government money. That includes claims submitted to state agencies, counties, cities, school districts, assessment districts, and other Nevada local government entities. The federal False Claims Act applies to fraud involving federal money.
A Nevada False Claims Act case is filed in Nevada state court, and the Nevada Attorney General receives the complaint and investigates. A federal False Claims Act case is filed in federal district court, and the U.S. Department of Justice, the local U.S. Attorney’s Office, and relevant federal agencies investigate.
The whistleblower’s share of the recovery works slightly differently. Under the federal False Claims Act, a whistleblower generally receives 15% to 25% if the government takes over the case, even if the government joins later in the case. Under the Nevada False Claims Act, the lower 15% to 25% range applies only if the Nevada Attorney General “intervenes at the outset.” If the Attorney General initially declines and then changes course and joins later, the whistleblower generally stays in the higher 25% to 30% range.
How a Nevada Qui Tam Case Works
A Nevada qui tam case typically begins when a whistleblower suspects or learns that a contractor, provider, vendor, or other recipient of public money submitted false claims to the State of Nevada or a Nevada county, city, district, or other local government.
The next step is usually to investigate with a Nevada attorney who handles whistleblower cases. The whistleblower must be careful about how they handle documents, confidentiality rules, patient information, and any privileged material because mishandling evidence can hurt the case. For practical guidance, see our whistleblower tips.
Before filing, counsel also has to consider whether another case has already been filed. Nevada’s first-to-file rule usually prevents a later whistleblower from bringing a Nevada False Claims Act case based on the same fraud another whistleblower or the government has already sued over. In Orbitz Worldwide, LLC v. Eighth Judicial District Court, 535 P.3d 1173 (Nev. 2023), the Nevada Supreme Court held that a whistleblower case brought to recover money for the State of Nevada was not blocked just because Clark County filed a separate case on the same fraud. The reason was that the two cases sought to recover different public funds: one for the State and one for the county.
After investigation, a complaint is filed in Nevada state court under seal, meaning the public and the defendant do not learn about it right away. The defendant is not notified or given a copy of the lawsuit at the start of the case. On the same day the complaint is filed, the whistleblower must give the Nevada Attorney General a copy of the complaint along with a written disclosure statement. The disclosure statement is a detailed write-up explaining the fraud, identifying the key people and documents, and attaching all material evidence the whistleblower has.
The Attorney General then investigates. The State has two options. It can intervene and take over the case, or it can decline to take over and let the whistleblower prosecute the case on behalf of the State. Even if the State declines at the beginning, it retains the right to monitor and re-enter the case later.
Under NRS 357.120, the Attorney General can also seek to settle or dismiss the case at any point, subject to certain procedures. In International Game Technology I, the Nevada Supreme Court held that the Attorney General had authority to seek dismissal even after initially declining to intervene.
If the case succeeds, the recovery is divided among the affected Nevada government entity, the whistleblower, and (where applicable) attorneys’ fees and costs.
Industries at Risk for Nevada False Claims Act Violations
Nevada Medicaid is one of the most important Nevada False Claims Act areas. The Nevada Attorney General’s Medicaid Fraud Control Unit investigates and prosecutes Medicaid provider fraud, including billing for services not provided. Nevada Medicaid fraud cases can involve hospitals, nursing homes, pharmacies, physicians, dentists, behavioral health companies, and other Medicaid-paid providers.
State and local contracting is another major area. Construction contracts, public works, IT services, staffing contracts, professional services, transportation contracts, and vendor agreements can all create false claims risk when payment depends on compliance with contract terms.
Education funding can also create exposure. False statements about eligibility, attendance, grant compliance, payroll, or program requirements may implicate state or local funds.
Defense contracting at Nellis Air Force Base, Creech Air Force Base, and the Nevada National Security Site is usually handled under the federal False Claims Act because the money involved is federal. The Nevada False Claims Act can still apply when Nevada state or local money is also part of the scheme.
Employee misclassification and state tax avoidance is another emerging area. Nevada companies that knowingly classify workers as independent contractors when they should be treated as employees can avoid paying Nevada unemployment taxes and other state assessments. Federal courts in Nevada have allowed at least one Nevada False Claims Act case to proceed on this theory.
Gaming industry disputes are not automatically Nevada False Claims Act cases. But the law can apply when a casino or other licensee submits false information to the State that ties to money or property the State is owed, fees the State should collect, or payments the State is being asked to make.
For examples of schemes that can create false claims liability, see our page on examples of False Claims Act cases.
The Relator’s Share Under Nevada Law
A Nevada whistleblower may receive a percentage of the proceeds if the case succeeds. Under NRS 357.210(1), when the Attorney General “intervenes at the outset” of the action, the relator generally receives 15% to 25% of the proceeds, depending on the relator’s contribution.
If the Attorney General does not initially proceed and the relator pursues the case, NRS 357.210(2) generally provides for a share of 25% to 30% of the proceeds.
The percentage can be reduced in certain circumstances, including where the relator planned or initiated the fraud. The relator’s contribution, timing, cooperation, and evidentiary value all influence where within these ranges the whistleblower’s final percentage falls. For more detail, see our page on how the relator’s share is calculated.
Anti-Retaliation Protections for Nevada Whistleblowers
The Nevada False Claims Act’s anti-retaliation provision, NRS 357.250, protects employees, contractors, and agents who report the fraud prohibited by NRS 357 or take any other action to stop it. Your employer cannot legally punish you for reporting suspected fraud or for participating in a Nevada False Claims Act case.
Retaliation can include being fired, demoted, suspended, threatened, harassed, or otherwise treated worse at work. If you can prove retaliation, you may be entitled to: get your job back (or money instead of reinstatement), twice the amount of pay you lost, interest, other special damages, punitive damages in appropriate cases, court costs, and your attorneys’ fees.
In International Game Technology, Inc. v. Second Judicial District Court, 124 Nev. 193, 179 P.3d 556 (2008) (“International Game Technology II”), the Nevada Supreme Court held that Nevada whistleblower protections are not limited to employees who were pressured into participating in fraud. Rather, it protects all employees from negative employment action because they lawfully disclosed suspected false claims or otherwise acted to stop them.
A whistleblower bringing only a retaliation claim (without a related fraud claim) does not have to follow the sealed filing procedures that apply to a full qui tam case, a fact which the Nevada Supreme Court clarified in Goldman v. Clark Cty. Sch. Dist., 136 Nev. 813, 471 P.3d 753 (2020).
For more detail, see our page on whistleblower retaliation protections.
Deadlines for Filing a Nevada False Claims Act Case
NRS 357.170 sets two possible deadlines for Nevada False Claims Act cases, and whichever deadline occurs later is the one that applies. The first is six years from the date the fraud occurred. The second is three years from the date the Nevada Attorney General learned, or reasonably should have learned, the facts that would support a case. Under this second deadline, no Nevada false claims case can be filed more than ten years after the fraud occurred, no matter when the Attorney General learned about it.
Retaliation claims have a separate three-year deadline under NRS 357.250. The clock for a retaliation claim runs differently than the clock for the underlying fraud claim, so whistleblowers should not assume both deadlines are the same.
Filing deadlines can get complicated when a fraud scheme has gone on for years, or when there have been government audits, disclosures, or investigations along the way. A whistleblower who thinks the fraud may be old should still consult with a Nevada qui tam attorney rather than assume the case is time-barred.
Frequently Asked Questions
Does Nevada have its own False Claims Act?
Yes. Nevada has the Submission of False Claims to State or Local Government Act, codified at NRS Chapter 357.
What is NRS 357?
NRS Chapter 357 is the section of Nevada law that contains the Nevada False Claims Act. It allows the Nevada Attorney General or a private whistleblower to bring a lawsuit when someone has made a false or fraudulent demand for money to the State of Nevada or any local government.
Can I sue a Nevada state contractor for fraud as a whistleblower?
Potentially, yes. A private whistleblower can file a Nevada qui tam case against a state contractor whose conduct fits within the Nevada False Claims Act, as long as nothing in the law bars the case from going forward. The specific facts, where the contractor’s money came from, whether the fraud has already been made public, and how quickly the whistleblower acts all affect the case.
How much can a Nevada whistleblower recover?
Under the Nevada False Claims Act, NRS 357.210, a relator generally may receive 15% to 25% of the recovery if the Nevada Attorney General takes over the case, and 25% to 30% if the Attorney General declines and the whistleblower successfully pursues the case alone. The exact percentage within those ranges depends on the whistleblower’s contribution and other factors.
How is the Nevada False Claims Act different from the federal False Claims Act?
The Nevada False Claims Act covers fraud involving Nevada state and local government money. The federal False Claims Act covers fraud involving federal money. The two laws use different courts, involve different government investigators (the Nevada Attorney General vs. the U.S. Department of Justice), and have some different deadlines and procedures. Many cases, especially Medicaid cases, can be brought under both laws at the same time.
Can my employer fire me for filing a Nevada qui tam case?
Legally, no. The Nevada False Claims Act’s anti-retaliation provision, NRS 357.250, makes it illegal for an employer to fire, demote, harass, or otherwise punish an employee, contractor, or agent for reporting, investigating, or helping with a Nevada false claims case. If your employer retaliates, you can sue to get your job back, recover twice your lost pay, and recover other damages and attorneys’ fees.
Where do I file a Nevada false claims act case?
A Nevada False Claims Act case is filed in Nevada state court. The complaint is filed under seal, meaning it is kept confidential from the public and from the defendant. On the same day the case is filed, the whistleblower must provide a copy of the complaint and all supporting evidence to the Nevada Attorney General. An experienced Nevada qui tam attorney handles these filing steps.
If you have evidence of fraud against the State of Nevada or a Nevada county, city, district, or other local government, the whistleblower attorneys at Gallagher & Lipshutz can evaluate your case. We handle qui tam cases under both the Nevada False Claims Act and the federal False Claims Act. Call (702) 381-3770 for a free, confidential consultation. We represent whistleblowers throughout the Las Vegas Valley, Reno, Carson City, and statewide. You can also contact Gallagher & Lipshutz online.