Qui tam lawsuits, also known as whistleblower lawsuits, are legal cases that allow individuals to sue on behalf of the government for fraud committed against it. The individual, known as the whistleblower, is entitled to receive a portion of any funds recovered by the government. The False Claims Act is the primary law that governs qui tam lawsuits in the United States. Several types of fraud can form the basis of a qui tam lawsuit.
Healthcare fraud
Healthcare fraud is one of the most common types of fraud that can be the basis for a qui tam lawsuit. This occurs when healthcare providers submit false claims to Medicare or Medicaid for services or treatments that were not provided or were unnecessary. This type of fraud can also include kickbacks or bribes paid to physicians to refer patients to certain medical facilities.
Government contract fraud
Government contract fraud occurs when companies submit false claims to the government for payment for goods or services that were not delivered or were of poor quality. This can also include billing for materials that were not used or charging excessive prices for products or services.
Securities fraud
According to the FCA, securities fraud is also a basis for a qui tam lawsuit. This form of fraud involves the manipulation of financial markets or investments. This can include insider trading, false financial statements, or the misrepresentation of information to investors.
Tax fraud
Tax fraud involves the deliberate underreporting or non-reporting of income to avoid paying taxes. This can include failing to report income from a business, claiming false deductions, or failing to pay taxes on offshore accounts.
Ultimately qui tam lawsuits provide a legal pathway for individuals to expose a variety of types of fraud committed against the government. The False Claims Act is but one of the many ways the law protects taxpayer dollars from misuse.