Lawsuits against businesses can begin for a broad range of reasons. Sometimes, people file lawsuits due to claims of workplace harassment or discrimination. Other times, consumers file lawsuits due to contract breaches or defective products.
There are many types of lawsuits possible when businesses violate the law or fail to fulfill their promises to others. Qui tam lawsuits are one form of litigation that certain companies may face. In a qui tam lawsuit, an individual acting as a relator files a lawsuit against a business. They do so on behalf of the federal government.
Such lawsuits are only possible in highly specific scenarios. Who typically initiates a qui tam lawsuit against a business?
Employees file when they know problematic information
Qui tam lawsuits are typically brought over allegations that a company violated the False Claims Act. This federal statute makes an organization responsible for up to three times the amount secured by fraudulently billing the federal government.
Typically, workers with inside information about company operations who recognize fraudulent activity are the ones who initiate qui tam lawsuits. Billers, medical coding specialists, office managers and other workers may eventually learn that their employers engage in inappropriate billing activities.
In many cases, qui tam lawsuits begin with medical practices that accept Medicaid or Medicare. Other times, railroad companies and businesses helping to maintain railway infrastructure may face lawsuits over alleged billing fraud. Even construction companies and vendors providing physical goods to the government could face allegations of fraudulent billing.
What protects a relator?
Workers take a professional risk by filing a lawsuit on behalf of the government. Their employers might end up going out of business due to the financial impact of the lawsuit. They may be at risk of losing their job due to retaliation.
Thankfully, federal rules prohibit retaliation against whistleblowers, including those who file qui tam lawsuits. Additionally, the relator can potentially receive financial compensation for a portion of the money recovered from the employer if the lawsuit is successful.
The process of initiating a qui tam lawsuit and asserting protection as a whistleblower can be overwhelming for those who have recently learned about a company’s illegal financial practices. Taking documentation to a consultation with a legal professional could help concerned employees protect themselves from retaliation and better ensure that they follow the appropriate procedure to hold their employers accountable for fraudulent billing activity.