What is Qui Tam case?
Qui tam is a provision of the False Claims Act (FCA) that allows private citizens (known as “relators”) to file lawsuits on behalf of the government against individuals or companies that have defrauded the government. The qui tam provision allows the relator to sue on behalf of the government and share in any monetary recovery that results from the lawsuit.
Under the qui tam provision, the relator must have evidence of fraud against the government and file a complaint in court under seal. The government has the option to join the lawsuit or decline to do so. If the government declines to intervene, the relator may proceed with the lawsuit on their own.
If the lawsuit is successful, the defendant may be required to pay damages, which can include treble damages (three times the amount of damages suffered by the government) and civil penalties. The relator is entitled to a percentage of the recovery, which can range from 15% to 30% of the damages, depending on the level of involvement and contribution to the case.
Qui tam cases can involve a wide range of fraud against the government, including healthcare fraud, government contract fraud, and tax fraud. The qui tam provision is designed to encourage private citizens to help the government combat fraud and recover money that has been wrongfully obtained.