Exposing corruption is a cornerstone of a free and just society. True whistleblowers, those who risk their careers, reputations and safety to shine a light on fraud, abuse or systemic wrongdoing, deserve our unwavering support. Their courage strengthens public trust, holds the powerful accountable and safeguards the common good.
Today, the noble act of whistleblowing is under threat, not from external forces but from within. A growing industry of professional opportunists has hijacked the whistleblower system, turning it into a profit-driven enterprise that undermines justice and silences genuine truth-tellers. There is an urgent need for reform to protect authentic whistleblowers and restore integrity to a broken process.
Whistleblowing, at its core, is about integrity, not profit. Historically, whistleblowers have been driven by a sense of duty. These individuals acted in the public interest, often at great personal cost. Today, the landscape has shifted. A new breed of so-called “professional whistleblowers” has emerged, exploiting legal frameworks like the False Claims Act to file dozens, sometimes hundreds, of cases, reaping multimillion-dollar payouts from settlements and judgments.
This industrialization of whistleblowing has dire consequences. The False Claims Act, designed to reward those who expose fraud against the government, now incentivizes speculative litigation. Professional whistleblowers, often backed by venture capitalists and law firms, file cases with little regard for evidence, banking on the high cost of legal defense to force settlements.
These cases frequently proceed under sealed indictments, preventing targeted companies from publicly defending themselves. The result? Reputations are destroyed, businesses collapse, employees lose jobs and patients lose access to critical services, not because of proven wrongdoing but because of the crushing weight of public shaming and legal overreach.
In one recent case, a whistleblower breached a court seal, only for an indictment to follow weeks later, raising alarming questions about prosecutorial collusion and retaliation. When prosecutors align with profiteers who flout court orders or publish self-aggrandizing books mid-litigation, the system itself becomes corrupt.
The most tragic casualty of this broken system is the genuine whistleblower. Those who act out of conscience, not greed, find their voices drowned out by the noise of opportunistic litigation. The public, bombarded with stories of million-dollar payouts and questionable motives, grows cynical, lumping true whistleblowers with profiteers. This skepticism makes it harder for legitimate claims to gain traction, as employers and regulators become wary of whistleblower motives.
The courage of those exposing real corruption is undermined by a system that rewards volume over veracity. For every whistleblower who risks everything to protect the public, there are now countless others gaming the system, clogging courts with frivolous claims and eroding trust in the process.
The costs are staggering. Beyond the economic toll (businesses shuttered, jobs lost, communities destabilized), the damage to due process is profound. The label of “fraudster” becomes a reputational death sentence, often without a trial.
Companies, especially small and mid-size firms, lack the resources to fight prolonged legal battles, forcing them to settle even when innocent. This isn’t justice; it’s extortion dressed up as accountability.
To restore integrity, we must reform the system. First, we need independent oversight of whistleblower claims to filter out opportunistic filings and protect good-faith reporters. Second, whistleblowers who breach court seals or profit from premature disclosures should face legal consequences. Third, the False Claims Act must be amended to prioritize genuine claims over speculative lawsuits, perhaps by capping the number of cases an individual can file or tightening evidentiary standards. Finally, transparency in whistleblower-prosecutor relationships is essential, especially when financial or personal incentives are at play. Prosecutors should not be partners in profiteering; their role is to uphold justice, not to enable a cottage industry of litigation.
At the 2025 American Legislative Exchange Council annual meeting, the Prosperity for US Foundation brought this message directly to state lawmakers, and the response was overwhelming. Dozens of legislators are committed to advancing a suite of constitutional amendments to restore fiscal sanity and government accountability. These reforms include protections against runaway property taxes, mandates for voter approval on new spending and debt, and structural safeguards modeled on time-tested policies like California’s Prop 13 and Switzerland’s Debt Brake. These victories demonstrate that Americans and their representatives are ready to take back control from bureaucracies and special interests that abuse the system.
Our fight for whistleblower reform is a natural extension of this mission. Just as we push to stop government financial recklessness, we must also curb the legal opportunism that punishes integrity and rewards exploitation. Whether it’s taxpayer dollars lost to unfounded litigation or small businesses crushed under unproven allegations, the public bears the cost of a broken system. That’s why the Prosperity for US Foundation is working with lawmakers, legal scholars and community leaders to design legislative solutions that restore balance, protecting real whistleblowers while shutting down the profiteers who have turned justice into a business model.
America needs whistleblowers who act in the public interest, not for personal enrichment. We must champion those who expose corruption while cracking down on those who exploit the system for profit. Without reform, the whistleblower system will continue to spiral into a racket, undermining justice, destroying lives and silencing the voices we need most.
Let’s honor the legacy of true whistleblowers by ensuring their courage isn’t drowned out by greed.