Many workers discover illegal activity in the workplace and feel unsure about what they can do about it. In some situations, employees may witness companies overbilling the government, submitting false claims for payment or engaging in fraudulent schemes involving taxpayer funds. A qui tam lawsuit allows private individuals to take legal action against companies or organizations accused of defrauding the government.
The term “qui tam” comes from a longer Latin phrase that essentially means a person brings a lawsuit on behalf of the government as well as themselves. These cases are most commonly filed under the federal False Claims Act, although some states have similar laws. A person who files the lawsuit is often called a “relator” or whistleblower.
Pursuing justice
Qui tam cases frequently arise in industries that receive government funding or participate in government programs. Healthcare fraud is one common example. A hospital, medical provider or pharmaceutical company may allegedly bill Medicare or Medicaid for services that were never provided, medically unnecessary procedures or inflated charges. Government contractors, defense companies, research organizations and financial institutions may also face allegations involving false claims.
One unique aspect of a qui tam lawsuit is that the whistleblower may be entitled to a portion of the money recovered by the government. If the case succeeds through settlement or judgment, the relator may receive a percentage of the recovery as a reward for helping expose the fraud. In some cases, these awards can be substantial.
Qui tam lawsuits are initially filed under seal, meaning they remain confidential for a period of time while the government investigates the allegations. During this stage, a defendant may not even know the lawsuit has been filed.
Yet, employees may – very understandably – fear retaliation for reporting misconduct. Thankfully, federal law prohibits many forms of retaliation against whistleblowers who lawfully report fraud or participate in qui tam actions. Workers who experience retaliation may have separate legal claims in addition to the underlying whistleblower case.
An experienced whistleblower legal team can help aspiring whistleblowers to understand their rights and exercise their options effectively. For workers who have uncovered serious fraud involving taxpayer money, a qui tam lawsuit may provide an opportunity to hold wrongdoers accountable while protecting the public interest.