Qui Tam: How the Law Works

Washington, D.C.

If you know someone is committing fraud against the government, you can file what is known as a qui tam or whistleblower lawsuit. "Qui tam" is short for the Latin phrase, "qui tam pro domino rege quam pro se ipso in hac parte sequitur," meaning "who sues in this matter for the king as for himself." These lawsuits are taken against fraudsters by an individual with knowledge of the fraud, but allow both the government and the person reporting the fraud (known as the "relator") to collect moneys taken as a result of fraud.

If you know of an individual or company that is guilty of fraud against the government, and want help in pursuing your whistleblower case, contact Chaikin, Sherman, Cammarata, & Siegel, P.C. in Washington, D.C. for a free consultation.

The First Step in a Qui Tam Case

The conduct of qui tam lawsuits is governed by the Federal False Claims Act.

A qui tam lawsuit is filed in federal court "under seal." This makes it confidential and only to the government officials investigating the case know its contents. Even the person charged with committing fraud is not informed of the investigation at first, allowing time for information to be gathered. The seal lasts for at least 60 days, but this time period can be extended, and routinely is extended, for as long as necessary to gather information to build a case, often two years or more.

Once the government has completed its initial investigation, it decides whether to join the case or not. If the government joins the case, your lawyer and the government's lawyers work together to litigate the case. Sometimes, the government decides not to participate, and you and your lawyer can proceed alone.

Why Act Quickly in Qui Tam Cases

It is important to act quickly in filing a qui tam case. The Federal False Claims Act establishes strict statutes of limitations for reporting acts of fraud. If you do not act quickly, you may be unable to receive compensation.

Whistleblower Awards and Protections

If the government decides to participate in your successful qui tam lawsuit, you can receive between 15 and 25% of the amount recovered, including damages and fines, which can often be two or three times the amount of the initial fraud. If the government does not opt to participate in your lawsuit, but you are still successful, you can receive between 15% and 30% of the amount recovered. There is no upper limit to these awards.

In addition, the False Claims Act provides protection for employees who report fraudsters and pursue lawsuits against their employers. Your employer cannot fire you, demote you, dock your pay, or otherwise discriminate against you for your participation in a whistleblower lawsuit. The law provides stiff penalties for any such retaliation against you. This includes forced reinstatement along with lost wages and penalties that can be two or three times your lost wages.

If you would like to learn more about participating in a qui tam lawsuit, the lawyers at Chaikin, Sherman, Cammarata, & Siegel, P.C. offer free case evaluations. Please schedule a consultation today.

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