What is a Qui Tam Lawsuit Under the False Claims Act?

The Federal False Claims Act (FCA) is in place to avoid and deter fraud against the United States Government. When employees, or other protected third parties (qui tam relator), bring a lawsuit (qui tam lawsuit) in federal court, if the relator prevails, he or she can recover a percentage of the damages from the government.

What Does Qui Tam Mean?

“Qui tam” means “in the name of the king” and is the shortened term for the Latin phrase “qui tam pro domino rege quam pro se ipso in hac parte sequitur.” This phrase can be translated to mean “he who sues in this matter does so on behalf of the king as well as himself. Qui Tam litigation involving federal government contracts involves either current or previous employees, and other contractors who may have specific knowledge about alleged violations of specific rules that apply to government contracting.

The False Claims Act protects whistleblowers or relators from any retaliation. The federal government does not intervene in every False Claims Act lawsuit. If a relator files a case, there must be substantial and credible evidence and documentation to support the qui tam whistleblower case and show evidence of fraud. If not, the government may decide not to intervene. Some of the most common allegations of fraud against the federal government under the FCA include healthcare fraud and government contract fraud.

What is a Qui Tam Lawsuit?

Government contracting qui tam lawsuits provide an avenue for a whistleblower to bring a lawsuit under the False Claims Act in the name of the United States. A qui tam action also provides rewards to whistleblowers if the case is successful and when the government actually recovers money as a result of fraud. Examples of the types of fraud in qui tam lawsuits include Medicare and Medicaid fraud, government contracting fraud, and more.

Whistleblowers may report tax frauds, securities law violations, and commodities law violations under other US whistleblower protection and reward programs, but those do not allow qui tam lawsuits.

When the Qui Tam relator files a False Claims Act qui tam lawsuit, the documents are filed under seal. This means that the public is not aware of the filing of the lawsuit. Only the government is made aware. This means that the government contractor/employer is not usually aware of the qui tam case being filed.

After a False Claims Qui Tam action is filed, the government may choose to intervene and take an interest in the case. Having a good False Claims Act defense attorney that understands the procurement process allows you to have a chance at defending yourself or your company during an investigation or litigation.

Violations of the false claims statute: If contractors are found liable Under the False Claims Act for violation of SBA regulations, the Buy American Act, or some other underlying violation, penalties can include paying up to three times the government’s losses plus civil penalties of between $5,500 and $11,000 for each false claim submitted.