When someone has evidence of fraud against the government, they may be able to file what is known as a “qui tam lawsuit.” Under the False Claims Act, this type of legal action allows private individuals, or “whistleblowers,” to sue on behalf of the government. In return for coming forward, whistleblowers may potentially receive a portion of the funds recovered.

In this guide, we’ll cover when a qui tam lawsuit is appropriate, who can file, how the process works, what kinds of rewards are possible, and why legal guidance can make a difference.

When Can You File a Qui Tam Lawsuit?

If you have information regarding a fraudulent act, such as overbilling a government program, delivering poor quality goods or services under a government contract, or falsifying information, you may be able to file a qui tam lawsuit.

However, you may only file if you:

Have original, previously undisclosed information about false claims made to the government
Are the first to file this information through a qui tam law firm
Come forward willingly to report this evidence
Cooperate with federal investigators in the ensuing investigation.

For example, you won’t be able to file a suit if another whistleblower has already come forward with the same information. In addition, if the information has already been reported in the media, you will not be eligible to file. This is why it is crucial for whistleblowers to avoid posting about their cases on social media or talking to reporters before working with a qui tam law firm.

Who Can File a Qui Tam Lawsuit?

Whistleblowers are often employees of companies that have been acting wrongfully, as they have the easiest access to evidence. However, other examples of people who might file a qui tam lawsuit include:

Industry insiders, like competitors for a government contract
Banking employees abroad who have information about offshore accounts, tax evasion, or hidden funds
Friends or family members who gain information about fraud and file a claim as private citizens.

You do not have to be in the United States or even a U.S. citizen in order to file a qui tam lawsuit. You also do not have to be entirely blameless in the fraud in order to report, although those who have orchestrated the fraud may not be able to file. In some cases, however, you may even still be able to receive a reduced percentage of the award depending on the facts and liability.

What is the Process For Filing a Qui Tam Lawsuit?

Filing a qui tam lawsuit begins with proof of wrongdoing or false claims made to the government in exchange for funds. Many people learn about fraud at work or are directly told to misfile data, miscertify documents, falsify inspection reports or labor costs, or send false coding or claims to insurance.

If you have evidence of fraud that has been obtained as part of your regular job duties, such as emails or documents you had lawful access to, bring it to your first consultation with a qui tam lawyer. Not every kind of proof is legal for whistleblowers to obtain, and speaking with an attorney can help you understand what else you will need to strengthen your claim and how to access it while protecting yourself from liability.

Once you have engaged a whistleblower lawyer, they will begin to build up your claim with supporting evidence, case law, legal arguments, and more. All of this will be filed as your initial report with federal investigators. During this time, federal agents have a 60-day period under seal to decide whether or not to follow up on your case. This window may be extended under certain circumstances. At the end of this time, you will receive a decision about whether or not the Department of Justice will move forward with your case.

If the DOJ decides to take on your claim, you will be asked to cooperate with federal investigators and may be interviewed. Your whistleblower attorney will be by your side for any and all communications with DOJ officials and will be your liaison for the case. If the DOJ does not take on your qui tam case, it does not always mean that your case is over. You and your qui tam attorney may continue to pursue it independently and may still receive a reward.

Are There Whistleblower Rewards?

Whistleblower awards can be significant in qui tam cases. This is because the False Claims Act imposes treble liability on violators, as well as individual penalties linked to each false claim. Whistleblowers can recover anywhere from 15% to 30% of the total settlement in successful cases. This is inclusive of all of the individual penalties as well as the treble liability rate.

For qui tam claims without government intervention, whistleblowers automatically receive 30% of recovered funds. However, because the total recovery amount is typically much larger when the government intervenes, whistleblowers often benefit more overall—even with a smaller percentage share.

Some examples of recent whistleblower rewards include:

$15.8 million whistleblower award in healthcare fraud case involving Universal Health Services
$13.75 million for four whistleblowers in labor cost fraud case with government contractors
$10 million for hospital executive who reported improper referrals under the Stark Law
$6 million paid to whistleblower doctor who reported medically unnecessary tests billed to Medicare, TRICARE, and federal health insurance programs
$851,000 whistleblower award in DoD contractor cybersecurity fraud case

Why Working With a Qui Tam Lawyer is Crucial

In most states, you must report fraud against the government through a qui tam law firm. Self-reporting is not a realistic option when it comes to a qui tam lawsuit, as the government, and not the individual whistleblower, is the real wronged party.

Working with a qui tam lawyer also brings certain advantages. An experienced qui tam law firm can ensure that your claim is filed correctly and on time, includes all of the necessary information, and is supported by strong legal arguments. All this can increase the likelihood of federal intervention in the claim—and in turn, boost whistleblower reward amounts. A qui tam lawyer will also ensure you qualify for all available whistleblower protection laws. Many qui tam lawsuits even qualify for additional state and civil claims, as well as protections through separate employment statutes. Don’t miss out on any of these advantages as a protected whistleblower.

Finally, qui tam claims can take several years before they are fully completed, especially when fraud involves large sums or has taken place over a long period of time. Your qui tam law firm will be your point of contact as a whistleblower so that you can return to your own life and employment without being hung up on the federal investigation.

Have Evidence of Fraud? Talk to the Qui Tam Attorneys at Power Rogers

At Power Rogers, we can help you blow the whistle while protecting your professional reputation. Our team of attorneys is committed to safeguarding your employment, guiding you effectively through the reporting process, and advocating for your reward percentage. If you have evidence of fraud against the government, speak to our qui tam attorneys today. Be the first to file for a possible qui tam reward.