From our offices in the Detroit area, Akeel & Valentine, PLC serves clients nationwide.

From our offices in the Detroit area, Akeel & Valentine, PLC serves clients nationwide.

Why are qui tam suits important?

On Behalf of | Aug 23, 2023 | Qui Tam

Have you ever heard the term “qui tam” and wondered what it means? Originating from a Latin phrase, “qui tam” refers to lawsuits where private individuals, often inside informants or whistleblowers, expose fraudulent actions against the government. These individuals, on behalf of the government, have the authority to bring a case forward.

This process might seem complex at first, but understanding how it works will help you see its significance to society.

Protecting public funds

When fraudulent activities occur against the government, it is essentially a theft from public funds. You, as a taxpayer, contribute to these funds with the expectation that they support public services and initiatives. Qui tam suits play a pivotal role in recovering these misused funds. Every time someone exposes fraudulent practices, the possibility of recouping lost money becomes tangible. Thus, qui tam actions directly safeguard your contributions and ensure the responsible use of public money.

Incentivizing whistleblowers

Qui tam provisions offer incentives to individuals who come forward with information about fraud. If a suit results in a recovery, the whistleblower often receives a portion of the recovered funds. In 2021 the government paid whistleblowers $237 million. This monetary reward encourages individuals who might otherwise remain silent due to fear of retaliation or job loss to bring fraudulent activities to light.

Deterring fraudulent activities

Companies and individuals are less likely to engage in deceitful practices against the government when they know that anyone within their ranks could expose them. The potential financial penalties and damage to reputation serve as strong deterrents against engaging in fraudulent activities in the first place.

Supplementing government efforts

The government cannot be everywhere at once, nor can it detect every fraudulent activity. By allowing individuals to expose fraud, the government increases its reach, ensuring that more wrongdoers face consequences for their actions.

Qui tam suits empower private citizens to act as an extended arm of oversight. They are a vital instrument in maintaining transparency, integrity and responsibility when dealing with public funds.