Qui tam is a legal provision rooted in the False Claims Act (FCA) empowering private citizens – aka whistleblowers or relators – to sue on behalf of the U.S. Government when someone defrauds it.
Filing a qui tam case under the False Claims Act (FCA) is a structured process with specific legal requirements which is advanced with legal counsel. It is a complex and high stakes endeavor that involves blowing the whistle on fraud against the U.S. government, potentially leading to significant monetary reward for the whistleblower.
To start a claim, a whistleblower with direct or independent knowledge needs evidence of someone knowingly submitting a false or fraudulent claim to the federal government for payment (or to avoid a payment owed) such as overbilling Medicare for unperformed services, falsifying records in a defense contract, or misrepresenting eligibility for federal grants. A whistleblower must provide legally obtained evidence which often includes documents such as invoices, contracts & emails; records of false submissions; and/or witness statements.
Qui tam cases are complex and FCA requires filing through legal counsel – an attorney experienced in FCA litigation who will help the whistleblower evaluate his or her evidence, draft the complaint, and guide the whistleblower through the process. The complaint will include details of the fraud, identify specify false claims or fraudulent acts, explain how the government was harmed, and the whistleblowers role as a relator and their evidence. The complaint is filed with the appropriate U.S. District court under seal, while sending a separate written disclosure statement to the DOJ and the relevant agency.
The DOJ will either take over the case, using its resources to prosecute; decline the case allowing the whistleblower to proceed on their own; or dismiss the case. Once the DOJ steps in, they unseal the complaint and the defendant is served, otherwise, the whistleblower’s attorney will litigate the case. Most qui tam cases settle, sometimes yielding multimillion dollar recoveries from which the whistleblower will receive a percentage and their attorney will be paid fees if contingency based. It is important to observe the statute of limitations by filing within specified timeframes.
Examples of Qui Tam Settlements Under FCA include:
- Pharmaceutical company settlement of $3 billion for promoting drugs for off label use, hiding safety risks, kickbacks, and inflating costs to Medicare and Medicaid with a whistleblower award of $149 million
- Hospital chain settlement of $1.7 billion for uncoded diagnosis, kickbacks, unneeded services, and defrauding Medicare with a whistleblower award of $631 million
- Defense contractor settlement of $325 million stemming from allegations of selling defective components with the whistleblower receiving an unspecified percentage of the recovery (typically ranges from 15% to 30% of amount recovered)
- Florida business man ordered to pay $20 million dollar judgement resolving allegations of fraud related to pandemic relief loans (PPP and EIDL funds) with whistleblower receiving unspecified share of recovery
Contact an Experienced Whistleblower Attorney Today
If you suspect fraud and are considering becoming a whistleblower, particularly in a qui tam context under the False Claims Act (FCA) it is important to document evidence carefully while maintaining strict confidentiality. Before taking any action, consult with an experienced qui tam attorney who will assess the strength of your evidence, advise you on legal protections, and guide you through the process. Remember that anyone can file a qui tam case, from corporate employees to those outside of a corporation such as customers, consultants, pharmacists, doctors and patients or even corporate competitors.
If you wish to file a whistleblower claim or are retaliated against for participation in an investigation into a co-worker’s discrimination complaint, or because of your legal whistleblowing, it is important to consult an experienced attorney – contact employment discrimination attorneys of Alan C Olson & Associates for immediate assistance today.
