What is a Qui Tam Action?

In many cases in which a whistleblower lawsuit is mentioned, the term qui tam might come up. This can be confusing for someone who believes that they might have information about fraud occurring within a company.

Whistleblowersare those people who have inside knowledge about practices that could be illegal and comes forward to report this behavior. In some whistleblower lawsuits, according to Wikipedia, the person who raises these issues could be entitled to a portion of funds recovered when the lawsuit is filed on behalf of the government.

What Makes a Case a Qui Tam Action?

Not every claim of fraud against a company will go through full litigation in which the government becomes involved. However, an individual still has the chance to pursue a qui tam claim on their own. The government is considered the main plaintiff in the lawsuit even when an individual brings the lawsuit on behalf of the government.

A False Claims Act, according to the Legal Information Institute, is one form of a qui tam action. A relator, or the person who brings a lawsuit over fraud, could be eligible to receive up to 30 percent of the government’s award from that lawsuit.

Who Are the Most Common Relators in a Qui Tam Action?

The person who brings a lawsuit against a company does not have to be personally harmed by the defendant’s actions in order to initiate a claim. A relator could include anyone who has inside knowledge about instances of fraud. However, the most common relators in a qui tam lawsuit include former employees, current employees, competitors, and contractors or subcontractors.

What Increases the Chance of a Successful Qui Tam Case?

There are many different kinds of successful fraud and qui tam claims, but many successful cases have similar elements. The person who brings the lawsuit, the relator, should have clear and specific details that they came across showing that fraud was widespread and that it was committed. This insider evidence is often the crucial element in showing that the company knew their behavior was inappropriate and illegal.

Another issue that comes up in many qui tam lawsuits is evidence showing that the wrongdoer’s behavior caused a serious level of non-financial harm. The government is more likely to intervene in cases in which people’s health or safety has also been compromised.

What Should be Looked At Before Filing a Qui Tam Case?

Since the relator’s award depends heavily on the amount that the government can recover under the False Claims Act, it’s important for the person bringing the suit to be clear that the company or person in question engaged in a fraud scheme that led to significant losses for the government and that the party involved also has the means to pay a significant whistleblower settlement or judgment to that government.

Should I File a Qui Tam Case?

Even if you believe that you have all the grounds to bring a qui tam lawsuit, you must consider whether or not an earlier qui tam suit was filed because of similar wrongdoing or if the wrongdoing actions were already publicly disclosed. The identity of the whistleblower might eventually be made public, too, however the False Claims Act provides protection from retaliation to the whistleblower.

This article is not legal advice. It is presented
for informational purposes only.