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A qui tam lawsuit is a legal action that lets someone report fraud against the federal government. This type of case falls under the federal False Claims Act. In a qui tam case, a private person files a lawsuit on the government’s behalf. This person is often a government worker who saw the fraud happen. If the case succeeds, the government sometimes gives part of the recovered money to the person who filed the claim.
How Qui Tam Lawsuits Work
A qui tam lawsuit begins when someone with knowledge of fraud against the federal government files a case under the False Claims Act. This person, called a relator, often works for the company or agency that committed the fraud. The relator files the lawsuit in federal court, and the case remains private at first while the government reviews it. If the government joins the case, it takes the lead. If not, the person who filed the case can still move forward with a lawsuit on their own.
Types of Employer Fraud That Can Lead to Qui Tam Cases
Employers who do business with the federal government sometimes commit fraud to get money they don’t deserve. When that happens, workers who know what’s going on can file qui tam lawsuits. Below are some common types of employer fraud that can lead to qui tam cases:
- A company charging for more hours or services than it actually provided
- An employer changing paperwork to make it look like they met contract terms when they didn’t
- An employer claiming it delivered medical care, supplies, or other services that it never actually provided
- Misusing federal grant money by spending government funds on things not allowed under the grant agreement
- Providing low-quality or unsafe products that don’t meet government standards but still asking for full payment
- Double billing by submitting the same invoice more than once to get paid twice for the same work
- Using kickbacks or bribes to get government contracts or to keep fraudulent behavior secret
Protections for Whistleblowers
Federal law protects workers who report fraud in good faith. The False Claims Act makes it illegal for employers to fire, demote, suspend, harass, or threaten workers for speaking up. Even if a qui tam case doesn’t move forward, the law still protects the worker from punishment for their efforts to do the right thing. If an employer breaks the law and retaliates against the worker, they can ask the court for back pay, job reinstatement, or other financial compensation.
Potential Rewards for Whistleblowers
If a qui tam lawsuit leads to a settlement or succeeds in court, the whistleblower can receive part of the money the government recovers. The share usually ranges from 15 to 30 percent of the total amount recovered. The percentage depends on how much the person helped with the case and whether the government joined the lawsuit. These rewards can be large, especially if the fraud involves millions of dollars in false claims.
Why Legal Representation Matters in Qui Tam Cases
Qui tam lawsuits are subject to detailed rules and strict deadlines. The process can move slowly, and the stakes are often high. An experienced lawyer can help whistleblowers gather evidence, file their claims correctly, and deal with the government. They can also protect the whistleblower from employer pushback and demand legal recourse in the event of retaliation. Obtaining legal support early on can make a big difference in the outcome of a qui tam case.
Contact a Qui Tam Attorney Now
If you believe your employer has committed fraud against the government, contact Herman Law Group today to review your situation and discuss your options. Your first consultation is free, and you don’t have to move forward unless you’re ready.