Questions? Start Here.
Understanding the complexities of False Claims cases can feel overwhelming, but you don’t have to navigate it alone. Our FAQ page provides clear answers to common questions about whistleblower rights, the legal process, and what to expect when pursuing a case. If you don’t find what you’re looking for, our team is always here to help.
What is a false claim?
A false claim is a demand for money or property based on a material falsehood or fraud. Examples of false claims include:
- Direct false claim: Intentionally making a false representation that causes the government to pay more than it would have otherwise
- Express false certification: Specifically certifying compliance with a required contract provision, statute, regulation, or governmental program
- Implied certification: Failing to comply with the terms of a contract
- Reverse false claim: Making a false statement to conceal, avoid, or decrease an obligation to the government
What is the difference between a false claims case and Qui Tam?
A “false claims case” refers to any lawsuit filed under the False Claims Act, alleging that someone has submitted a fraudulent claim to the government for payment. A “Qui Tam” is specifically a false claims case filed by a private individual (known as a “relator”) on behalf of the government, allowing the individual to share in any recovered damages if the case is successful. Essentially, a Qui Tam is a type of false claims case brought by a whistleblower.
What is Qui Tam?
In 2020 alone, the Department of Justice recovered over $2.2 billion through judgments and settlements in civil cases involving fraud and false claims against the government. Despite these staggering figures, many people remain unfamiliar with Qui Tam litigation and its vital role in combating such misconduct.
The term Qui Tam comes from the Latin phrase “Qui Tam pro domino rege quam pro se ipso in hac parte sequitur”, meaning “he who sues on behalf of the king, as well as for himself.” Originating in England, these cases allowed ordinary citizens to take legal action against wrongdoers on behalf of the crown, with the promise of a financial reward. In 1863, during the Civil War, President Abraham Lincoln signed the False Claims Act—also known as “Lincoln’s Law”—to address rampant fraud against Union forces and the federal government.
Today, Qui Tam litigation empowers private individuals with insider knowledge of fraud against the federal government to file lawsuits on its behalf. Commonly referred to as whistleblowers, these individuals play a crucial role in exposing fraud and may receive a portion of the financial recovery as a reward. By stepping forward and sharing critical information, whistleblowers help protect not only taxpayer dollars but also the safety and well-being of soldiers, medical patients, and countless other citizens who might otherwise suffer from the consequences of fraudulent activities.
Under the False Claims Act, whistleblowers can report non-public information about fraud and potentially receive substantial rewards for their efforts in safeguarding public interests.
Our experienced team of whistleblower attorneys, led by Greg Dykeman, is dedicated to helping individuals who believe they may have a Qui Tam claim. If you suspect fraud or have unique knowledge of wrongdoing against the government, we encourage you to explore the resources available on our website, including a short video explaining Qui Tam litigation. Fill out the contact form to allow us to determine how we may assist you in pursuing your claim.
What is a relator?
A Qui Tam relator is the whistleblower in a Qui Tam lawsuit. They are the individual or entity that steps forward with information about the fraud and commences legal action under the False Claims Act. The relator’s role is pivotal in exposing fraud and reclaiming government funds.
Should I file a Qui Tam lawsuit?
If you’re considering filing a Qui Tam lawsuit against a current or former employer, business partner, or associate, the key question to ask is: Do you have non-public or “insider” information that reveals fraud causing harm to the federal government?
It’s important to note that you don’t need to have suffered personal harm to file a Qui Tam case. However, if you have experienced retaliation as a result of uncovering or reporting fraud, the law also allows you to pursue a retaliation claim against the defendant.
How Much Can Whistleblowers Earn?
Under the False Claims Act, the average settlement for an intervened case is $13 million, meaning a whistleblower could earn up to $3.9 million. Eligibility and amounts depend on the specific program and case details.
Less than 25% of Qui Tam cases result in government intervention—making it vital to work with experienced False Claims Act counsel who can fully develop the facts, evaluate legal theories, and pursue the case even if the government declines to intervene.
Whistleblower rewards typically range from 15% to 25% if the government intervenes, and 25% to 30% if it does not.
Additional factors that may influence the award include:
- The value and usefulness of the information supplied
- Whether the whistleblower was involved in the underlying misconduct
- The level of assistance offered during the investigation
- The promptness of the report
- The expertise and strategy of the relator’s legal counsel
Since 1986, whistleblowers have helped recover over $40 billion for U.S. taxpayers under the False Claims Act.
What do I need to know before hiring a Qui Tam attorney?
If you’re considering pursuing a Qui Tam lawsuit as a whistleblower, it’s crucial to understand the governing laws and potential challenges before hiring an attorney. One key consideration is the Statute of Limitations for Qui Tam claims under the False Claims Act. These claims must generally be filed:
- Within six years of the false claim being submitted, or
- Within three years after the government becomes aware (or should have become aware) of the facts underlying the claim,
- But no later than ten years after the violation, whichever occurs last
The rules surrounding limitations periods can be complex, and additional legal hurdles may apply, including:
- First-to-file rules: Only the first whistleblower to file a claim on specific allegations may proceed
- Public disclosure bars: Claims based on publicly disclosed information may be barred unless the whistleblower qualifies as an original source
- Original source issues: Whistleblowers must provide unique and direct information not previously disclosed
- Retaliation claim limitations: Different timelines may apply for retaliation claims
Time is a critical factor in Qui Tam litigation, so acting promptly is essential.
How do I pick the right Qui Tam law firm?
For whistleblowers, selecting the right legal team is one of the most critical decisions in the Qui Tam process. The outcome of your case often hinges on having a skilled and experienced firm by your side. While there are many factors to consider, here are a few essential questions every whistleblower should ask when choosing a law firm:
How successful is the firm with Qui Tam cases?
Look for a proven track record of handling and winning Qui Tam lawsuitsDoes the firm have experience in your industry?
Ensure they understand the specifics of your trade and the nuances of your industryDoes the firm have trial experience in Qui Tam cases?
A firm with actual trial and courtroom experience is critical if your case goes to trialWill the firm outsource or transfer your case?
Some firms may refer you to another legal team, especially if the government declines to participate. It’s best to choose a firm that can handle your case from start to finishWhat is the firm’s fee structure?
Does the firm work on a contingency fee basis (only taking a percentage of the recovery if the case is successful) or charge hourly fees? Contingency arrangements often align better with the whistleblower’s interests- Will filing a qui tam case cost me money?
If we accept representation of your case, you don’t pay unless we win
Who are Whistleblowers?
Qui Tam whistleblowers, also known as “relators,” are individuals with insider knowledge of fraud being perpetrated against the government. These courageous individuals file lawsuits on behalf of the government to expose and address the wrongdoing.
Whistleblowers are often current or former employees who, after attempting to report or resolve the fraud internally or with the government, face resistance—or even retaliation, such as termination. They come from a wide range of industries and roles, including:
HEALTH CARE
- Executives
- Account Managers
- Financial Officers
- Accounting Personnel
- Nurses
- Doctors
- Laboratory technicians
- Hospital employees
- Pharmaceutical employees
- Any employee in the billing department of a company that receives payments from Medicare or Medicaid
FINANCIAL SERVICES FRAUD
- Executives
- Account Managers
- Financial Officers
- Accounting Personnel
PROCUREMENT FRAUD/DEFENSE CONTRACTORS
- Executives
- Financial Officers
- Project Managers
- Accounting Personnel
- Quality Control employees
- Contract Administrators
SCIENTIFIC RESEARCH
- Doctors
- Scientists
- Accounting Personnel
GOVERNMENT
- Government employees
- Former government employees
COMPETITORS
- Often, a competitor of the wrongdoer that knows of the fraud and wishes to stop it
What are my rights as a Whistleblower?
When a whistleblower files a Qui Tam lawsuit, their identity is typically disclosed to the government as part of the disclosure statement. While the case is under seal, the defendant does not know the whistleblower’s identity. If the Department of Justice elects to intervene in your case or you authorize our team to proceed with your case after the United States declines to intervene, your identity will become known to the defendants.
Protections Under the False Claims Act (31 U.S.C. § 3730(h))
The False Claims Act (FCA) includes robust protections for whistleblowers, also known as relators, against retaliation. Key provisions include:
Protection Against Employer Retaliation:
The FCA protects whistleblowers from retaliation or harassment by their employers, even if they are independent contractors or not classified as traditional “employees” under the law.
Extension of Protection to Others:
Employers are prohibited from retaliating against the whistleblower’s family members, friends, or colleagues.
Relief for Retaliatory Actions:
Whistleblowers who experience retaliation—such as being discharged, demoted, suspended, threatened, or harassed—are entitled to remedies, including:
- Job reinstatement with maintained seniority
- Double back pay with interest
- Compensation for special damages, including litigation costs and reasonable attorneys’ fees
Recent Amendments to Strengthen Whistleblower Protections
The FCA has undergone updates to enhance whistleblower protections. A significant amendment in 2009 clarified and expanded these safeguards by:
- Extending protection to “any employee, contractor, or agent” discriminated against for lawful actions aimed at stopping violations of the FCA
- Removing the requirement that retaliatory actions be taken only by the whistleblower’s employer
- Broadening coverage to protect not only whistleblowers but also their family members, colleagues, independent contractors, and agents associated with the employer
These updates demonstrate the FCA’s commitment to providing whistleblowers with the strongest protections possible, ensuring they can safely expose fraud without fear of retaliation.
What happens in a Qui Tam Case?
While every Qui Tam case is unique, the process generally follows these key steps:
Step A: A private citizen with insider knowledge of fraud against the government contacts a Qui Tam law firm to explore potential legal action.
Step B: The whistleblower’s attorney evaluates the evidence, the merits of the case, and the financial stability of the defendant. If the case appears viable, the attorney may enter into a contingency fee agreement with the whistleblower, covering both the Qui Tam lawsuit and any potential retaliation claims.
Step C: Once contractual terms are agreed upon, the attorney prepares a detailed disclosure statement for the government and a formal complaint to file with the court.
Step D: The Federal District Court where the case is filed places the lawsuit under seal for 60 days (or longer, if extensions are requested) to investigate the allegations.
Step E: During the sealed period, the government may issue subpoenas to gather additional evidence from the defendant, building a stronger understanding of the claims.
Step F: While the case remains under seal and is not public, the government may, in some instances, partially lift the seal to discuss allegations with the defendant and potentially negotiate a settlement.
Step G: The government then decides whether to intervene in the case, often with input from the whistleblower’s attorney.
Step H: The next steps depend on the government’s decision:
- If the government intervenes, the whistleblower and their attorney collaborate with the Department of Justice to prosecute the case
- If the government declines to intervene, the whistleblower and their attorney may choose to continue the case independently or dismiss it; many Qui Tam firms do not have trial attorneys, which can influence the decision to proceed without government support
What makes a good Qui Tam case?
When evaluating a potential Qui Tam case, there are several important factors to consider:
- What is the harm to the government?
How significant is the financial impact or damage? - What evidence supports your claims?
Do you have access to:- Emails or correspondence?
- Recorded phone conversations?
- Potential witnesses who can corroborate the fraud?
- Documents or records detailing the scheme and the amounts involved?
If you’re unsure how to organize this information, don’t worry. An experienced Qui Tam law firm will guide you through the process, helping you compile and present the evidence in a clear and compelling manner to strengthen your case.
When should I file my Qui Tam lawsuit?
The False Claims Act states that once a person has filed a Qui Tam lawsuit, no other person may file “a related action based on the facts underlying the pending action” (31 U.S.C. §3730(b)(5)).
It’s important to consider if there is anyone else – another employee or coworker – that knows what you know about the government’s fraud. Have you talked to anyone else about the information you possess?
Put simply, if you have a good case, proceed expeditiously. There’s little time to waste. If someone “beats” you to filing a case, you will lose your standing.
The statute of limitations for a Qui Tam action is found in Title 31, Section 3731(b) of the United States Code.
“A civil action under section 3730 may not be brought—
(1) more than 6 years after the date on which the violation of section 3729 is committed, or
(2) more than 3 years after the date when facts material to the right of action are known or reasonably should have been known by the official of the United States charged with responsibility to act in the circumstances, but in no event more than 10 years after the date on which the violation is committed, whichever occurs last.”
In determining which limitations period applies to an FCA action, courts examine the time at which either the relator or the government became aware or knew of the violation.
RELATION BACK OF GOVERNMENT’S COMPLAINT
If the government intervenes in the FCA action, the government can file its own complaint or amend the complaint of the relator to add details or claims. For statute of limitation purposes, any pleading filed or amended by the government for the purpose of adding new claims will relate back to the filing date of the relator’s complaint to the extent that the new claims arise out of the same conduct alleged in the relator’s complaint.
SIX-YEAR LIMITATION
Under Section 3731(b)(1), an FCA action must be brought within six years after the date the defendant committed the violation. This limitations period assumes that the Qui Tam whistleblower or the government has knowledge of the violation. The main issue then becomes determining the proper date that the violation was committed. Most courts hold that the date of submission of the claim is the trigger date for the six-year statute of limitations. However, some courts hold that the statute does not begin to run until the date the claim was actually paid. A few courts even make a distinction based on whether damages or penalties are sought.
THREE YEAR TOLLING PROVISION
In 1986, Congress modified the FCA to include a tolling provision for the statute of limitations, which provided that an FCA action may not be brought “more than 3 years after the date when facts material to the right of action are known or reasonably should have been known by the official of the United States charged with responsibility to act.” The majority of courts have held that the statute’s reference to an official means the responsible official in the Department of Justice. However, a minority of courts have held that other governmental agencies or officials will qualify as an “official” within the meaning of the section. Courts are split over whether a Qui Tam whistleblower is entitled to take advantage of the tolling provision in Section 3731(b)(2).
For more information and case citations, please see “Federal False Claims Act and Qui Tam Litigation,” published by Law Journal Press (2010).
Will my information stay confidential if my false claims act case is rejected?
Under the False Claims Act, your information is kept confidential, as cases are filed under seal with the court protecting it from public disclosure. This ensures that the details of your claim and your identity are protected during the investigation phase by the government. If the government declines to intervene, the seal may eventually be lifted, which could make some case filing information public.
Working with an experienced False Claims Act attorney is crucial to maintaining your confidentiality throughout the process and understanding the potential risks.
Does it make a difference if I report the fraud to the government directly or file a Qui Tam under the False Claims Act?
Hiring an attorney with proven success in handling False Claims Act cases is the smartest financial decision you can make. Only by filing a whistleblower claim with the help of experienced legal counsel can you secure 15% to 30% of the government’s recovery.
Acting alone or reporting fraud directly to authorities may exclude you from receiving any part of the Qui Tam recovery. An attorney with a track record of success ensures your claim is strong, your rights are protected, and your financial recovery is maximized.
Will the firm continue if the government declines to intervene?
Government intervention is ideal, but it doesn’t always happen. Since the government declines to join most Qui Tam cases, it’s essential to choose a firm that is willing and able to proceed independently if necessary.
Your fight against fraud is our fight too.
If you have information about potential fraud against the government, our team is here to help. Fill out our confidential contact form, and let’s discuss how we can work together for a recovery on your behalf.
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