Qui Tam and the False Claims Act
The qui tam provision of the False Claims Act allows individuals and organizations to act as whistleblowers and sue those that are defrauding the government in a variety of fields. A qui tam lawsuit filed by a whistleblower will share in the recovery if the lawsuit is successful. Whistleblowers can report any type of fraud against the government including tax fraud, contractor fraud, and various types of health care fraud. The most common types of whistleblower cases in the medical field deal with Medicare and Medicaid fraud. You don’t have to actually work at the establishment committing the fraud to file a qui tam lawsuit. Any individual with information about fraud against the government can file a qui tam lawsuit. Qui tam lawsuits are filed in federal court under seal so that only the whistleblower, the court, and the government is aware of the case. It is done this way to allow the government to investigate the allegations to determine if it will join in the whistleblower case. The individual or entity named in the qui tam lawsuit will not know they are being investigated until the government has decided to join the case. The federal government has recovered billions of dollars through qui tam lawsuits in this public-private partnership against federal fraud.
WHAT ARE THE REWARDS FOR QUI TAM WHISTLEBLOWERS?
A qui tam whistleblower is also known as a “relator.” A relator is entitled to anywhere from 15% to 25% of the government’s recovery if the lawsuit is successful if the government joined the case. If the government decided to not join the case and the relator continued the suit on their own, they are entitled to up to 30% of the recovery if they are successful. The percentage a relator gets depends on many factors, including the quality of the information provided and the quality of the qui tam attorney’s work. Relators who are employees of the organization they are suing under qui tam are also protected from retaliation from their employers under the False Claims Act. Relators who are retaliated against can sue for reinstatement, double back pay, and other damages. It is important to note that the law only rewards the first person to file a complaint about a previously unknown federal fraud.
HOW DOES THIS AFFECT ME?
If you have information about possible federal fraud, then you might be eligible to file a qui tam lawsuit as a relator. Relators have a hugely important role in helping the government seek out and investigate alleged Medicare and Medicaid fraud. A qui tam lawsuit must be filed within six years of an alleged violation or within three years after the government knows or should have known about an alleged violation. Relators are often current and ex-employees of the individual or entity that is accused of fraud, but not always. Relators can also be competitors or independent contractors. It does not matter what position you actually hold in becoming a relator, the important thing is the information you have in helping the government recover from financial fraud. If you have any questions about your eligibility to file a qui tam lawsuit, then it is important to seek the advice of an experienced federal attorney immediately. You are likely not the only person to have information about the fraudulent activities of an individual or entity, what you do with that information can have life-altering affects.
