Qui tam lawsuits are an option for individuals who come across evidence of fraud in federal contracts.
These claims come with special protections for the whistleblowers who file the qui tam lawsuits and financial incentives for those who win.
What Is a Qui Tam Lawsuit?
At the federal level, qui tam lawsuits are covered by the False Claims Act. This law bolsters enforcement against fraud in any federal contract or federally-funded program.
Congress amended this Civil War-era law in 1986 in response to increasing reports that government contractors had been getting away with fraud. With so many government contractors and limited resources with which to police them, Congress created an incentive for private citizens to help punish and prevent contractor fraud by bringing what’s called a qui tam lawsuit.
This type of lawsuit allows a private person to sue a government contractor for fraud on the government’s behalf. These types of claims are sometimes called private attorney general lawsuits — since what is a whistleblower but a private party acting on the attorney general’s behalf? Whoever brings the claim is entitled to certain whistle blower protection, and if the claim is successful they also get to share in the recovery.
Qui tam lawsuits depend on a public-private partnership between the plaintiff and the government enforcement authorities. That’s where the whistleblower comes in.
What Is a Whistleblower?
A whistleblower is the private person who brings a qui tam lawsuit. The whistleblower has a special role to play in a qui tam lawsuit that’s different from the role a plaintiff plays in an ordinary civil claim.
The whistleblower’s claim is initially filed under seal. It’s kept secret for a time so that the U.S. Department of Justice gets a chance to investigate the allegations. While by law the case must be kept under seal for 60 days, in practice courts generally extend that period for months or years to accommodate the government’s investigation.
Once that investigation is complete, the government has the option of intervening in the case if it finds sufficient merit in the allegations. Often the government elects not to intervene. In those cases the whistleblower has the option of continuing to prosecute the case themselves, but historically such all-private qui tam lawsuits aren’t often successful.
If the government ultimately recovers some of its losses, either in settlement or at trial, the whistleblower gets a cut of the winnings. The size of the whistleblower’s share varies, but typically a successful whistleblower can expect about 15 to 25 percent of what the government recovers.
That payout can be increased by the False Claims Act’s damages provisions, which can stick a losing defendant with a hefty penalty. Damages in a qui tam lawsuit can be as much as three times the government’s losses, plus other penalties.
Whistle Blower Protection
Some of the people in the best position to bring a qui tam lawsuit are also the ones with the most to risk by doing so. Internal employees of government contractors have the best access to evidence of any alleged fraud, yet they expose themselves to possible retaliation if they take action.
That’s why Congress provided for whistle blower protection in the False Claims Act. Anyone who takes lawful steps to bring a qui tam lawsuit is entitled to protection from employer retaliation.
The False Claims Act entitles such a person to seek “all relief necessary” to make the whistleblower whole again. That relief can include reinstatement after firing and double the amount of back pay with interest, plus reimbursement of attorneys’ fees and the costs of litigation.
For more information on what is a qui tam lawsuit and whether to file one, consulting a qui tam lawyer is the best possible way to learn.
In general, whistleblower and qui tam lawsuits are filed individually by each plaintiff and are not class actions.
Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual qui tam lawsuit or whistleblower class action lawsuit is best for you. Hurry — statutes of limitations may apply.
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If you believe that you have witnessed fraud committed against the government, you may have a legal claim. See if you qualify to pursue compensation and join a whistleblower lawsuit investigation by submitting your information for a free case evaluation.
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