What is the False Claim's Act? Whistleblower’s Guide to Qui Tam Lawsuits

Qui tam is a lawsuit rooted in an ancient common law writ that permits a private individual, referred to as a qui tam relator, to initiate legal action behalf of the government and potentially receive a monetary reward. The False Claims Act empowers qui lawsuits to help the government pursue cases aimed at recovering damages and penalties for fraud committed against it. When a case is successful, the qui tam relator may receive a whistleblower reward.

What is a qui tam lawsuit or qui tam action?

Qui tam lawsuits are a specific type of whistleblower action initiated under the False Act, which incentivizes whistleblowers when the government successfully recovers funds lost to fraud. Numerous states have their own false claims acts that address fraud against state governments, which can also be pursued through a qui tam lawsuit. These lawsuits serve as a powerful tool for whistleblowers to assist the government in combating various forms of fraud and reclaiming money for the US Treasury and taxpayers. Common allegations in qui tam claims include fraud related to Medicare and Medicaid, defense contracts, and procurement. Qui tam lawsuits have successfully recovered billions of dollars that were wrongfully taken from the US Treasury and taxpayers. While whistleblowers can report tax fraud, securities law violations, and commodities law violations through other US whistleblower protection and reward programs, those programs do not permit qui tam lawsuits.

Who can become a qui tam whistleblower and file a qui tam lawsuit?

Anyone with information about government fraud can act as whistleblower and file a qui tam lawsuit. This could an employee of the fraudulent company, a competitor, a contractor, or anyone else who possesses relevant. An attorney will file the qui tam lawsuit on behalf of the whistleblower, referred to as “relator” in these cases. The lawsuit and accompanying documents should provide the government with detailed about the fraud. Qui tam law includes restrictions to ensure that only one whistleblower receives a reward for reporting fraud and to prevent lawsuits based on certain public information.

A qui tam lawsuit under the False Claims Act can arise from any of the following violations by an individual or entity:

- Knowingly presenting, or causing to be presented, a false or fraudulent claim for payment or approval

- Knowingly making, using, or causing to be made or used, a false record or statement crucial to a false or fraudulent claim for payment or to an obligation to pay or transfer money or property to the government.

- Knowingly concealing or improperly or decreasing an obligation to pay or transfer money or property to the government.

The False Claims Act defines “knowingly” in a broader context than its typical use, encompassing not only actual knowledge of wrongdoing but also deliberate ignorance or reckless disregard for the truth. This means individuals can be held liable for false claims even without intent to defraud if their actions meet this standard.

How can whistleblowers safely report fraud and file a qui tam case?

Step 1: Consult a Qui Tam Attorney

Under the False Claims Act, a whistleblower is required to have legal representation to file a qui tam case. skilled qui tam attorney will assist you in crafting a thorough complaint that outlines the fraudulent activity and its legal violations.

Step 2: File the Qui Tam Lawsuit Confidentially

The qui tam lawsuit is submitted to federal district court "under seal," meaning it remains confidential allowing only the government to be aware of the case. This confidentiality grants the government time to investigate the claims and decide whether to support the whistleblower’s case.

Step 3: Government Investigation and Decision on the Qui Tam Case

During the sealed phase, the government will perform a detailed investigation of the whistleblower's claims. It will then determine whether to intervene in the qui tam lawsuit, joining the whistleblower as a plaintiff. If the government chooses to intervene, it will take a more proactive role in the case; if it declines, the whistleblower can still pursue the lawsuit independently. The case will remain sealed until the government's decision, after it will be public.

Step 4: Carefully Select Your Qui Tam Attorney

Choosing the right attorney is vital the success of a qui tam case. An experienced qui tam lawyer is familiar with the specific procedures and regulations of the False Claims Act, ensuring your rights are safeguarded. It’s essential to conduct thorough research and thoughtful consideration when selecting and hiring a qualified qui tam attorney. When deciding to become a whistleblower and file a qui tam case, it's important to consider key steps and select your attorney wisely, as these choices can significantly impact the outcome of your case.

What happens after a qui tam lawsuit is filed?

After a qui tam case is filed, the government investigates the allegations and determines whether it will join, or “intervene,” in the qui tam case. The False Claims Act states that a qui tam case will be sealed for 60 days while the government conducts its investigation, but courts generally extend the seal period to give the government more time to complete its work.

The government intervenes in only a small percentage of the hundreds of qui tam lawsuits filed each year. When the government intervenes, it has primary control over the case, but the whistleblower and their attorney still participate. Whistleblowers have the option under the False Claims Act to pursue qui tam cases on their own, if the government declines to intervene. The government may ask the court for permission to join the qui tam lawsuit later even if it does not join at the beginning.

Defendants found liable under the False Claims Act may have to pay as much as three times the government’s losses plus penalties for each false claim. Most successful qui tam cases are resolved through settlement negotiations rather than a court trial, although trials may occur.

How are qui tam whistleblowers protected?

Whistleblowers can securely report fraud and initiate a qui tam case. Individuals who file qui tam lawsuits are protected under the qui tam provisions of the False Claims Act, which prohibit retaliation for reporting violations or attempting to address breaches of the Act. This protection extends to employees, independent contractors, and agents alike. The False Claims Act ensures relief for any employee, contractor, or agent who experiences discharge, demotion, suspension, threats, harassment, or other forms of discrimination related to their employment conditions. Whistleblowers facing retaliation in a qui tam lawsuit have the right to sue for reinstatement, double back pay, and any additional damages deemed appropriate.

Why choose us?

Choosing our firm for your qui tam case means partnering with experienced professionals dedicated to protecting your rights and interests. Our knowledgeable team understands the complexities of whistleblower laws and is committed to providing personalized support throughout the process. We pride ourselves on our proven track record of successful outcomes and our unwavering commitment to justice. Trust us to advocate for you and navigate the legal landscape with expertise and integrity.