What Qui Tam Means
A qui tam action is brought under the False Claims Act by a private individual, called a relator, on behalf of the United States, alleging someone defrauded a federal programme. Healthcare, defence contracting and government grants are the most common settings.
The relator is not suing for their own loss. They are pursuing the government claim, and in exchange may receive a share of what is recovered. Many states have parallel statutes covering state funds.
The first to file usually wins the right to proceed
Only the first relator to file on a given fraud can generally proceed. A later filing on substantially the same allegations is barred, which is why delay in these cases can eliminate a claim entirely regardless of how strong it is.
How the Process Works
The complaint is filed under seal, meaning it is not public and the defendant is not told. The government then investigates while the case remains sealed, often for a year or more with extensions.
The government may intervene and take over the case, which substantially improves prospects, or decline, leaving the relator to proceed alone if they choose. Most recoveries come from cases the government joins.
Damages under the statute are trebled, meaning three times the loss, plus substantial per-claim penalties. That multiplier is what produces the very large settlements this area is known for.
Awards and Protection
A relator share is typically 15 to 25 percent where the government intervenes, and 25 to 30 percent where it does not and the relator succeeds alone. The percentage reflects the contribution made.
The statute also prohibits retaliation, providing reinstatement, double back pay and costs where an employee is dismissed or demoted for lawful acts in furtherance of a claim.
Do not take documents you have no right to
Gathering evidence is essential but taking privileged material, patient records or confidential data beyond what your role permits can expose you to separate liability and can jeopardise the case. Speak with counsel before collecting anything.
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Qui Tam Lawsuits: How False Claims Act Whistleblower Cases Work: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What is a qui tam lawsuit?
A False Claims Act case brought by a private individual on behalf of the government alleging fraud against federal funds, with a share of any recovery going to the filer.
Why is it filed under seal?
So the government can investigate without the defendant knowing. The seal typically lasts a year or more while that investigation proceeds.
What is the first-to-file rule?
Only the first relator to file on a given fraud can generally proceed. Later filings on substantially the same allegations are barred.
What share does a whistleblower receive?
Typically 15 to 25 percent where the government intervenes, and 25 to 30 percent where it declines and the relator succeeds alone.
Am I protected from retaliation?
Yes. The statute prohibits retaliation and provides reinstatement, double back pay and costs for employees dismissed or demoted for lawful acts furthering a claim.
Legal Disclaimer
This article is general legal information, not legal advice, and does not create an attorney-client relationship. Case status, eligibility criteria, and any amounts described are as reported at the date shown and may change. Consult a licensed attorney in your jurisdiction about your own situation.