Understanding the Basics of Qui Tam Law
The Fall 2024 issue of The Federal Lawyer focuses on qui tam law, featuring substantive articles that dive deeper into this key area of federal law. But what is qui tam?
“Qui tam” comes from a Latin phrase meaning “he who brings an action for the kind as well as for himself.” As it relates to federal law, this concept allows private individuals to litigate against entites that have committed fraud against the federal government. Qui tam actions are filed under the False Claims Act (FCA), which was enacted during the Civil War to address the problem of widespread fraud by military suppliers. Fast forward to today, and the FCA empowers whistleblowers to take legal action on behalf of the government.
There are some common industries that see qui tam cases brought by whistleblowers. In healthcare, fraud occurs when overbilling Medicare or Medicaid, giving financial kickbacks to physicians, or billing for services not provided. Procurement fraud involves misrepresenting facts and/or qualifications to secure government contracts. More specifically, defense contracting fraud means inflating prices or providing goods of insufficient quality to the military.
How Does a Qui Tam Case Work?
There are specific elements that must be present in a False Claims Act violation. Of course, there must be a false claim in which the defendant knowingly requested fraudulent payment from the government. The key here is that “knowingly” piece—that the intent was to defraud the government. Also, the falsehood must be material, meaning it could influence the government’s decision to pay.
The first step in a qui tam case is when a whistleblower files a complaint in federal court. This is done under seal, which means the case is kept confidential. The government then has time to investigate the allegations without alerting the accused.
During the government’s investigation, its attorneys review the evidence presented. They decide to either intervene, meaning they will take the case and litigate, or decline, which allows the whistleblower to proceed independently. If the lawsuit is successful, the whistleblower may receive a large portion of the recovered funds. This is dependent on whether the government intervenes or if the whistleblower proceeds independently, but can be up to 30%.
Aside from financial rewards, qui tam law also provides protection from retaliation by the whistleblowers’ employers, including being harassed or fired.
There are some challenges with bringing a FCA lawsuit on behalf of the government. For example, if the fraudulent activity has already been reported—whether in government reports or in the media—the case may be barred. There are also strict pleading standards by which courts require detailed evidence to support the claims of fraud. And there is a statute of limitations on bringing a qui tam case: it must be filed within six years of the fraud or within three years of when the government should have known about it.
Why Qui Tam Law Matters
Whistleblowers risk their professional—and even personal—lives to expose fraud, but they realize that speaking up is important. Since 1986, when the FCA was modernized, qui tam cases have recovered over $70 billion for taxpayers.
While qui tam cases can be complex and challenging, the they are an important part of maintaining accountability and integrity in federal programs. If you’re aware of fraud against the government, find an attorney who is experienced in qui tam law to help and protect you.
Related Posts
10 Takeaways from DOJ’s Record-Setting FY2025 Civil Fraud Recoveries
In January 2026, the U.S. Department of Justice (DOJ) released its annual report on civil fraud recoveries (settlements and judgments)…
Stronger Together: Harnessing the Power of State and Federal False Claims Acts in Sealed Investigations
Sponsor-Provided Content Ashley Kenny, Esq. (Pietragallo Gordon Alfano Bosick & Raspanti, LLP) State False Claims Acts (“FCAs”) are an underutilized…
Katherine Seikaly Chronicles the Benefits of Attending the Qui Tam Conference
Federal Bar Association conferences are an ideal opportunity to take a deep dive into emerging and unique areas of the…