How To File a Qui Tam Lawsuit

Filing a qui tam lawsuit under the False Claims Act is a powerful tool for whistleblowers to combat fraud against the federal government. These lawsuits permit whistleblowers to file a qui tam complaint on behalf of the United States government, holding defendants accountable when they submit a false or fraudulent claim for payment. Because qui tam lawsuits allow a private individual to recover money for the government, they remain one of the most effective ways to prohibit fraud in federal programs.

This guide explains how to file a qui tam lawsuit, what makes a strong qui tam case, and the protections and rewards available to qui tam whistleblowers.

What Is a Qui Tam Lawsuit

A qui tam action is a False Claims Act case that allows private citizens, called qui tam relators, to sue for a false claim made against the government. The term qui tam literally means “he who sues in this matter for the king as well as for himself”.

The False Claims Act originated during the Civil War, when Congress amended the law to stop defense contractors from overbilling the government. Today, qui tam provisions permit whistleblowers to expose fraud in areas such as healthcare fraud, procurement fraud, and misuse of government funds.

Many states also have their own False Claims laws, allowing whistleblowers to pursue qui tam actions at the state level, particularly in Medicaid fraud cases.

Who Can File a Qui Tam Case

To file a qui tam, the filer (known as the qui tam relator) must meet several requirements:

• Provide substantial and credible material evidence of fraud.
• Ensure the claim is based on non-public information, unless they are the original source.
• File first—if another relator or the government has already filed, later cases may be barred.
• Must not have been convicted of related criminal activity.
• Work with an experienced qui tam attorney who understands civil procedure and the federal rules for filing.

Qui tam relators are often insiders, employees, or contractors with direct knowledge. Their serious inquiry into fraud can form the basis of a strong whistleblower case.

How Do You File a Qui Tam Lawsuit Step by Step

Here’s the step-by-step qui tam process for filing a qui tam under the False Claims Act:

1. Consult an experienced qui tam attorney.
   Because the qui tam process involves strict deadlines and confidentiality rules, legal analysis from an attorney is critical.
2. Gather supporting documents.
   Collect contracts, billing records, emails, and other proof of a fraudulent claim. Ensure you can substantially provide all material evidence to the government.
3. Draft the qui tam complaint.
   Your lawyer will prepare a detailed qui tam complaint identifying each false record or false claim, along with the defendant’s conduct.
4. Prepare a disclosure statement.
   Provide the DOJ with a written disclosure statement containing all material evidence. This step helps government lawyers assess whether to intervene.
5. File under seal in federal district court.
   The qui tam suit must be filed under seal in a federal district court following the federal rules of civil procedure. Filing under seal ensures confidentiality during the seal period, usually 60 days.
6. Serve the Attorney General and U.S. Attorney.
   Copies of the qui tam complaint and disclosure statement must be delivered to the Attorney General and the local U.S. Attorney. The defendant is not notified at this stage.
7. Government investigates.
   During the seal period, the government investigates whether the false claims warrant intervention. The seal may be extended if needed.
8. Government decides on intervention.
   • If the government intervenes, it assumes primary responsibility for litigation, but the relator and their lawyer may still participate.
   • If the government declines, the relator may proceed independently.

When the government decides, it sets the course of the litigation, whether through settlement or court trial.

What Happens After Filing a Qui Tam Suit

If the government intervenes, it takes the lead in pursuing damages, often resulting in settlements that include civil penalties, treble damages, and recovery of funds. If the government declines, the relator still has the right to pursue the qui tam case on behalf of the government.

Both successful scenarios allow relators to recover money and receive a share of the proceeds.

What Rewards Do Qui Tam Whistleblowers Receive

Successful qui tam cases offer significant rewards:

• 15%–25% of recovered funds if the government intervenes
• Up to 30% if the government declines and the relator pursues the qui tam action
• Reimbursement for litigation costs and reasonable attorneys’ fees

These reward whistleblowers and encourage insiders to permit whistleblowers to expose fraud that might otherwise go undetected.

How Are Qui Tam Relators Protected

The False Claims Act states that whistleblowers must be protected to guard against retaliation:

• Reinstatement if wrongfully terminated or demoted
• Double back pay plus interest
• Compensation for litigation costs, damages, and reasonable attorneys’ fees

These protections ensure qui tam whistleblowers can safely report fraud without losing their livelihood.

How Can Whistleblowers Safely Report Fraud?

To ensure whistleblowers safely report fraud, best practices include:

• Consulting an experienced qui tam attorney before taking action
• Avoiding public disclosure of case details
• Preserving all lawful material evidence
• Following the correct court orders and filing procedures

By working with an attorney, relators can file a qui tam securely and maximize their chances of a successful outcome.

Important Considerations

Before moving forward with a qui tam case, whistleblowers should be aware of several important rules that can affect eligibility, timing, and the likelihood of success. Understanding these considerations ensures you don’t lose your right to file and helps strengthen your position when the government decides whether to intervene.

First-to-File Rule

Only the first relator to bring forward a qui tam action on specific fraudulent conduct may proceed. If another person has already filed a related case based on the same facts, later claims will be barred. Filing promptly is critical to preserving your rights.

Statute of Limitations

Like other False Claims Act cases, qui tam lawsuits have strict deadlines. Generally, a case must be filed within six years of the false claim, though in some situations, claims may be allowed for up to ten years after the fraud occurred.

Government Intervention Matters

Whether or not the government intervenes often determines the case’s strength. When the federal government takes over, the chances of success increase substantially. This makes it essential to provide a thorough disclosure statement and a well-prepared complaint supported by strong material evidence.

Conclusion

Filing a qui tam lawsuit is a serious inquiry into fraud that protects federal government funds while rewarding brave insiders who step forward. Whether the government intervenes or the government declines, qui tam relators can still achieve justice and recover money for taxpayers.

If you have information about a false or fraudulent claim, speak to an experienced qui tam attorney. With proper guidance, you can navigate the qui tam process, protect your rights under the False Claims Act, and pursue justice in the federal district court.