False Claims Act

What is Qui Tam?

Qui tam is a legal principle found in the Federal False Claims Act that allows any person, including corporations, known as whistleblowers, to bring a lawsuit on behalf of the government against anyone who uses government funds in a fraudulent way. Qui tam also allows the whistleblower who filed the suit to receive a portion of any funds that are recovered by the qui tam lawsuit.

Most anyone can file a qui tam lawsuit, including employees of the company or agency that is defrauding the government, former employees of the company or agency, competitors or subcontractors, state and local governments, federal employees, public interest groups, corporations, and private citizens.

Federal False Claims Act

The Federal False Claims Act was originally enacted (in 1863) to fight defense contractor fraud, but it was also applicable to all federal programs and federal contractors. Unfortunately, it was very difficult for a private citizen to bring suit because they had to bear the cost of the suit themselves. In addition, several judicial rulings had made it hard to enforce the law.

In 1943, Congress amended the law so that the reward to the whistleblower who brought the suit was reduced. In addition, the amendments provided that a person could not file a qui tam lawsuit if the government had prior knowledge of the charges.
Finally, in 1986, Congress once again amended the False Claims Act to raise the amount rewarded, to raise the amount of damages that could be imposed on the defendants, to allow the qui tam case to be filed even if the government already knew about the charges, and to protect the whistleblower. After these amendments passed, qui tam cases began to be filed in increasing numbers.

Qui Tam Cases

There are several types of qui tam cases that can be filed. These include mischarging, product and service substitution, false negotiation or defective pricing, and false certification of entitlement for benefits.

Qui tam cases have been successfully brought against defense contractors and on behalf of other agencies, including Health and Human Services (HHS) and NASA.

Whistleblower Protection

The whistleblower protection clause in the 1986 amendment to the False Claims Act protects the whistleblower from harassment, demotion, and wrongful termination. In addition, the whistleblower protection extends to anyone who investigates, testifies, initiates, or assists in a qui tam lawsuit.

If you believe you may have a qui tam case, contact a qui tam attorney to discuss the specifics of your lawsuit.