A qui tam lawsuit is a type of legal action that allows private individuals, known as whistleblowers, to sue on behalf of the government. These lawsuits often involve fraud or misconduct by companies or organizations that harm the government or taxpayers. Qui tam cases encourage individuals to report unlawful activities by offering a financial reward.
What is a qui tam lawsuit?
A qui tam lawsuit is part of the False Claims Act, which allows individuals to file a lawsuit against a company or individual that commits fraud against the government. The person who files the lawsuit, called the “relator” or whistleblower, can receive a portion of the money recovered if the case is successful. The term “qui tam” comes from a Latin phrase meaning “he who sues for the king as well as for himself.”
How does a qui tam lawsuit work?
The whistleblower files the lawsuit in federal court, but the government typically gets the chance to investigate and decide whether to intervene in the case. If the government chooses not to get involved, the whistleblower can continue the lawsuit independently. If the case results in a successful recovery, the whistleblower may receive a percentage of the funds, often between 15% and 30%, depending on the circumstances and involvement.
Common examples of qui tam lawsuits
Qui tam lawsuits often address issues such as healthcare fraud, defense contract fraud, or false claims for government grants or payments. For instance, a company that overcharges Medicare or falsifies records to receive government payments could become the subject of a qui tam lawsuit.
Filing a qui tam lawsuit offers a way for individuals to help uncover and address fraud against the government, with the potential for financial rewards. These cases help protect public resources and hold wrongdoers accountable.