In today’s complex legal and regulatory environment, holding government contractors and organizations accountable for fraud is more important than ever. One powerful tool in this fight against fraud is the qui tam lawsuit, a legal mechanism that empowers individuals to act on behalf of the government when they uncover wrongdoing. But what is a qui tam lawsuit, exactly, and why is it so crucial in whistleblower legal action?
This comprehensive guide will walk you through everything you need to know about qui tam lawsuits—how they work, who can file them, why they matter, and how an experienced whistleblower attorney can help protect your rights and ensure you’re properly compensated for your actions.
What Is a Qui Tam Lawsuit?
A qui tam lawsuit is a type of legal action brought under the False Claims Act (FCA), a federal law that allows private individuals—known as whistleblowers or “relators”—to sue on behalf of the United States government when they have knowledge of fraud committed against federal programs or contracts.
The term “qui tam” comes from the Latin phrase “qui tam pro domino rege quam pro se ipso in hac parte sequitur,” which means “he who sues on behalf of the king as well as for himself.” In legal terms, it refers to a lawsuit filed by a private individual on behalf of the government against someone who has committed fraud.
How Qui Tam Lawsuits Work
When someone files a qui tam lawsuit, the process begins with a sealed complaint filed in federal court. The complaint must include detailed information and evidence showing that fraud was committed against the government. During the initial phase, the government investigates the allegations and decides whether to intervene in the case.
The Key Steps in a Qui Tam Case:
- Investigation by Whistleblower: The whistleblower identifies fraud—often through their role in the company or organization—and gathers evidence.
- Filing Under Seal: The lawsuit is filed under seal, meaning it is kept confidential while the government investigates.
- Government Review: The Department of Justice (DOJ) evaluates the case and determines whether it will intervene.
- Case Proceeds: If the government intervenes, it takes the lead in prosecuting the case. If not, the whistleblower can still proceed with the lawsuit independently.
- Potential Recovery: If the case is successful, the whistleblower may receive a portion of the recovered funds—typically between 15% and 30%.
Common Examples of Fraud in Qui Tam Cases
Qui tam lawsuits typically involve fraud against federal programs, contracts, or funds. Some of the most common types of fraud that lead to these lawsuits include:
- Healthcare Fraud: False Medicare or Medicaid billing, upcoding, billing for unnecessary procedures, or kickback schemes.
- Defense Contractor Fraud: Overbilling for military equipment, providing substandard products, or inflating costs.
- Procurement and Grant Fraud: Misuse of federal grants or submitting false information to secure government contracts.
- Pharmaceutical Fraud: Marketing drugs for unapproved uses or engaging in illegal pricing schemes.
- Education Fraud: Falsifying student records or misusing federal education funds.
Each of these fraud types can cost the government millions—or even billions—of dollars. Qui tam lawsuits are a vital means of holding fraudulent actors accountable.
Who Can File a Qui Tam Lawsuit?
Any individual who has non-public knowledge of fraud against the government can file a qui tam lawsuit. This often includes current or former employees, contractors, consultants, or even competitors. However, there are some limitations:
- The whistleblower must be the first to file the claim.
- The allegations must not be based solely on publicly disclosed information, unless the whistleblower qualifies as an “original source.”
- The claim must involve actual fraud against the government—not just workplace wrongdoing or private disputes.
Because of these complexities, it’s essential to work with an attorney who understands the intricacies of whistleblower and employment law.
Protections for Whistleblowers in Qui Tam Cases
Blowing the whistle on fraud is a courageous act—but it also carries risks. Fortunately, federal law offers strong protections for whistleblowers who face retaliation. Under the False Claims Act, it is illegal for an employer to fire, demote, harass, or otherwise discriminate against an employee for filing a qui tam lawsuit or assisting in a government investigation.
If you experience retaliation, you may be entitled to:
- Reinstatement to your former job
- Back pay with interest
- Compensation for emotional distress
- Legal fees and other damages
At The Howley Law Firm, we have extensive experience handling whistleblower retaliation cases and protecting clients from employer retaliation.
Why Qui Tam Lawsuits Matter
Qui tam lawsuits are not just about exposing fraud—they’re about safeguarding public funds, improving accountability, and encouraging ethical conduct in government programs. These cases have recovered billions of dollars for the U.S. Treasury and helped uncover dangerous and illegal business practices.
Equally important, they empower individuals to make a real difference. Whistleblowers who take legal action are often motivated not just by financial incentives, but by a desire to do the right thing.
How The Howley Law Firm Can Help With Whistleblower Cases
At The Howley Law Firm, we are proud to stand with whistleblowers and employees who have the courage to report wrongdoing. Located in New York, we have over 30 years of legal experience, and our firm is committed to protecting the rights of workers in New York who are facing unlawful treatment or retaliation for speaking out.
We are experienced employment and whistleblower lawyers specializing in qui tam lawsuits, whistleblower retaliation, and employment litigation. Our in-depth understanding of both state and federal laws allows us to provide strategic, compassionate, and effective representation to every client we serve.
Whether you’re considering filing a qui tam lawsuit or facing retaliation after reporting fraud, our attorneys will guide you through every step of the legal process and fight to protect your rights.
Talk to an Experienced Qui Tam Lawyer Today. Contact The Howley Law Firm in New York
If you’ve been asking, “What is a qui tam lawsuit?” and wondering whether you have a case, the next step is to speak with a qualified attorney. These cases are complex and often high-stakes—but with the right legal representation, whistleblowers can protect themselves and help hold wrongdoers accountable.
If you are in New York and need help filing a qui tam lawsuit, contact The Howley Law Firm today. Our experienced whistleblower attorneys are here to discuss your case confidentially and help you understand your legal options. Let us help you take the next step toward justice.
FAQs
Qui tam lawsuits typically involve fraud related to government programs or contracts, such as Medicare/Medicaid fraud, defense contractor fraud, grant misuse, or false billing. Any act that results in financial harm to the government can potentially be the basis for a qui tam claim.
If the government recovers funds through a successful qui tam lawsuit, the whistleblower (or “relator”) is entitled to a portion of the recovery. This is typically between 15% and 30%, depending on whether the government intervenes in the case.
Qui tam lawsuits are initially filed under seal, meaning your identity is kept confidential while the government investigates the case. However, if the case moves forward, your identity may eventually be disclosed during litigation.
The statute of limitations for qui tam cases under the False Claims Act is generally six years from the date of the fraud, or up to ten years in certain circumstances. Timing is crucial, so it’s best to speak with an attorney as soon as possible.
You may still file if you qualify as an “original source” of the information—meaning you have independent and direct knowledge of the fraud. However, public disclosures can complicate your case, so legal advice is critical.
