The qui tam process can be a lengthy one. A good qui tam law firm can help you navigate the process, make sure that you check all required boxes, and put your best foot forward with the government enforcement agencies.
As a whistleblower (called a relator) in a qui tam case, you have certain rights and obligations. Discover everything you need to know about the process, and what you will need to contact a firm and begin a free confidential evaluation of your potential case.
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What Is the False Claims Act?
The False Claims Act (FCA) is a federal statute that allows whistleblowers to bring fraud claims on behalf of the government. If you have unique, previously undisclosed information about false claims made to the federal government on a contract, grant or other program (such as Medicare or Medicaid), you may be able to become a relator, or whistleblower, under the False Claims Act.
The False Claims Act is the nation’s most powerful anti-fraud law. It requires violators to pay the government treble damages and penalties for each false claim, and deter future misconduct. It can thus also have a positive impact on the entire industry. The FCA gives whistleblowers protections against retaliation, as well as incentivizes reporting by allowing qualified relators to recover anywhere from 15 to 30% of the total settlement.
What Does “Qui Tam” Mean?
Qui tam is part of a longer Latin phrase, “qui tam pro domino rege quam pro se ipso in hac parte sequitur.” Loosely, the sentence means “he who brings an action on behalf of the king as well as himself.” Qui tam law is a part of the American legal system that dates back to the country’s roots as an English colony, but today allows individuals to bring fraud allegations against private companies on behalf of the federal government and state government agencies.
What Happens After You Decide to Blow the Whistle?
Under the False Claims Act, certain elements must be proven which is why you need to be represented by an experienced qui tam attorney:
- Material: a false claim must have influence over the government’s decision-making to pay a claim, award a contract, or reimburse a healthcare provider.
- Knowing: False statements must be made knowingly. This does not require that an entity intended to launch a fraud scheme against the government, but that the private company has acted with at least reckless disregard of the federal requirements.
A whistleblower’s report also must meet certain requirements in order to qualify for a reward under the False Claims Act such as:
- First to File Rule: The whistleblower must be able to bring information that has not already been reported in the media or self-disclosed by the company. Whistleblowers with helpful information can also join forces to file a single complaint, but doing so must be coordinated with a law firm. Once information has already been reported, it may not be eligible for a reward.
- Strict Pleading: The whistleblower must be able to meet strict pleading standards and back up their claim with evidence. Examples might include other employees’ testimonials, internal communications such as emails, text messages, Slack messaging, PowerPoint presentations, company memos, audits, reports, or other internal company documents. Each case will have different types of evidence that is helpful to the government.
- Voluntary Disclosure: A whistleblower must report with the help of an attorney and cooperate with federal investigators. Even if you also have some culpability, you may still be able to get an award by speaking up.
- Timeliness: Reporting must also fall within the statute of limitations of within six years of when the fraud took place, or within three years of when the government official in charge of the project should have known about it.
- Filing under seal: Complaints are filed under seal for the initial 60 day window while federal investigators decide whether or not they will further evaluate and investigate your case. This window is almost always extended for good reason, such as investigators requiring additional proof.
Hiring a Qui Tam Lawyer
Hiring a qui tam lawyer should never be taken lightly, because of the immense role that they will play in not only assembling your case, but also adding credibility to the case and protecting your rights. Reporting against a large and powerful company is not easily done without an experienced attorney and preferably one who has previously been a prosecutor.
For these reasons, look for a firm with experience working for the government and deep experience handling False Claims Act cases when selecting a qui tam attorney. Ideally, they will have connections to Department of Justice investigators, or be former federal or state fraud prosecutors themselves.
What to Bring to the Initial Consultation
Discuss with a qui tam attorney the types of evidence of wrongdoing that has organically crossed your path at the initial consultation and the attorney will tell you what types of documents may be helpful. Examples might include memos that you have access to, reports from your own department, emails or messages you have received. Your attorney can advise you about the safest path forward for collection of evidence because there are certain categories of documents you want to avoid sharing such as the company’s attorney-client communications.
Filing a Qui Tam Lawsuit
Your attorney will take the reins on what is needed to file your qui tam lawsuit. They will assemble the evidence that you have collected, applicable legal precedent and industry regulations, as well as the structure required to file within the appropriate jurisdiction. They will file within the correct timeline, and submit all required materials to federal investigators for review.
If the Government Takes the Case
If DOJ officials take on your claim, you will be asked to cooperate with the investigation to the fullest extent possible. You may be asked to share your evidence with the federal agency in question. Your qui tam attorney will be by your side for every interaction you have with investigators. In many cases, follow up by prosecutors and investigators on a qui tam claim is the best case scenario, because that means the government has found your evidence credible.
If the Government Declines to Intervene
Should your case not be settled or litigated by the government, your attorney will evaluate whether your case is still meritorious and worth pursuing without the support of the government. This is an important decision you must make with an experienced qui tam attorney and only after speaking with the government first to understand why the government decided to not intervene.
Protections for Whistleblowers Who File Qui Tam Lawsuits
As a whistleblower, you can have your case evaluated anonymously and confidentially through a qui tam law firm. Should you be discriminated against at work due to reporting, your qui tam law firm can also evaluate whether to file a claim against your employer for retaliation that meets certain requirements and potentially recover:
- Up to double back pay
- Reinstatement at prior seniority level
- Possible front pay, in cases where reinstatement is not possible
- Additional damages for harm done
- Attorneys fees and legal costs
Are Whistleblower Identities Kept Confidential?
During the course of the government investigation, your case will remain sealed and your identity confidential.
Can a Whistleblower Be Fired for Filing a Qui Tam Lawsuit?
Retaliation against FCA whistleblowers is prohibited by law. By filing under the FCA, you may have a cause of action if you are fired or retaliated against by your employer in any of the following manners:
- Demotion or termination (being fired)
- Reduction of hours
- Reduction of pay
- Harassment
- Failure to promote
- Adverse changes to conditions of employment, such as transfer to another branch, loss of benefits, loss of bonuses, or other forms of retaliatory action
What Happens Once a Settlement Agreement Is Reached?
Suppose the government obtains a settlement and you meet all requirements for a whistleblower reward under the qui tam provisions. In that case, the government will pay you promptly once it has received the money from the defendant (private company). There may be additional whistleblower reward programs that apply to your case, depending on the details of your case. For instance, certain kinds of fraud may also be actionable under state False Claims Act statutes, the SEC Whistleblower Program, or the CFTC Whistleblower Program.