At McCune Law Group, we believe that no wrongdoing should be allowed to persist unchecked, no matter how powerful the perpetrator may be. That’s why we’re dedicated to providing the absolute best in whistleblower protection. The whistleblower attorneys at MLG stand up for the legal rights of individuals who speak out against fraudulent practices, corruption, and illegal activities taking place within any organization.
Of course, there are as many types of whistleblower lawsuits as there are types of fraud. The complexity and variety in these cases can easily become overwhelming. Here, we break down one of the lesser known, but very powerful, options for whistleblowers: the qui tam claim. Read on to learn more about how this unique legal strategy empowers individuals to challenge corporate malfeasance.
What is a Qui Tam Lawsuit?
Based on ancient common law that grants private individuals the power to bring a lawsuit on behalf of the government, a qui tam lawsuit describes a legal action in which a person assists the government in prosecuting a fraud claim. If the claim is successful, the private individual — known here as a qui tam realtor — will have the option of receiving a small reward.
Qui tam suits are authorized in the United States under the False Claims Act (FCA), which rewards whistleblowers in cases where the government can successfully recover funds previously lost to fraud.
Qui tam claims are typically filed against entities that are defrauding the government, through misuse of government funds, tax fraud, or illegal kickbacks. These are often organizations with government contracts and may include medical services providers or pharmaceutical companies.
The Importance of Qui Tam Claims
Qui tam lawsuits can play a pivotal part in uncovering widespread fraud against the government. This is because private individuals who become qui tam relators may possess insider knowledge, authorizing them to disclose fraudulent activities that might otherwise go unnoticed. By offering private citizens a small financial incentive to come forward with evidence of fraud, the qui tam provisions of the FCA empower private individuals to act as watchdogs against corruption and mismanagement in the use of public funds. This not only makes it easier for the government to recover billions of dollars in taxpayer funds but also promotes accountability and integrity in public-facing institutions.
How Qui Tam Lawsuits Work
- Filing the Complaint The process begins when a whistleblower files a sealed complaint in federal court. A sealed complaint means the content of the complaint is not immediately available to the public, giving the government time to investigate without alerting the accused party or parties. The complaint will typically outline the nature of the fraud, the facts that support the allegations, and the parties involved.
- Government Investigation: Once the complaint has been filed, the government has 60 days to investigate its claims and decide if they want to intervene. The Department of Justice (DOJ) will evaluate the merits of the claims, often working with the whistleblower and their attorney to gather further evidence. During this 60-day investigative period, the case remains confidential.
- Intervention or Non-Intervention: After the investigation has come to a close, the government may intervene in the lawsuit, or they may decline to do so. If the government does intervene, it will take over the case and pursue allegations on the realtor’s behalf. If the government opts not to intervene, the relator can still proceed with the case with the help of their whistleblower lawyer.
- Settlement or Trial: Most qui tam lawsuits are settled out of court via negotiations, and there’s thus often no need to go to trial. In some situations, however, a trial may still occur. In these cases, a qui tam trial does not differ significantly from any other major civil suit.
How Qui Tam Whistleblowers Are Protected
The False Claims Act (FCA) offers strong protections for whistleblowers of all stripes. The qui tam whistleblower provisions prohibit retaliation against employees who report fraud. This means that whistleblowers cannot be fired, demoted, or discriminated against for participating in a qui tam lawsuit. Such protections also extend to anyone who assists with the investigation or legal proceedings.
The FCA also offers relief to any whistleblower or affiliate who is subject to any retaliation or discrimination of the kind detailed above. This relief may take the form of double backpay, reinstatement, and/or suitable damages.
Of course, retaliation is contingent upon the qui tam relator’s identity being made public. Because qui tam lawsuits are initially filed under seal, the realtor’s identity may be protected during the early stages of investigation. Efforts can be made to maintain that anonymity even if the government moves forward with a qui tam claim.
In short, the FCA’s excellent qui tam whistleblower provisions offer significant protection to potential whistleblowers. Fear of retaliation should never prevent individuals from speaking up if they have knowledge of fraud.
The Financial Incentives of Filing a Qui Tam Lawsuit
Another key factor at play when individuals initiate qui tam lawsuits is the potential to claim significant financial rewards. The FCA provides substantial incentives for whistleblowers by offering:
- Reward Percentage: When a qui tam action succeeds, the whistleblower is eligible to receive a percentage of the recovered funds. This award typically ranges from 15% to 30% of the total recovery, though the exact percentage will vary depending on the specifics of the situation.
- Recovery of Legal Fees: In addition to a financial reward, the relator may also recover any legal fees or litigation costs associated with the lawsuit. This encourages individuals to take action without fear of facing debilitating legal expenses.
- Potential for Large Settlements: In addition to having significant impacts on corporate accountability and the integrity of federal programs, successful qui tam lawsuits can yield settlements in the millions. Notable cases, such as the 2003 HCA Healthcare case, have seen recoveries in the hundreds of millions of dollars, while also encouraging stricter compliance within the healthcare industry. In 2022, the DOJ announced that it had recovered 5.6 billion dollars in FCA cases involving government funds.
Requirements for a Qui Tam Whistleblower
To become a qui tam realtor, a whistleblower must meet specific requirements. You may have standing to file a qui tam lawsuit, if you…
- Are the Original Source of Information: A qui tam whistleblower must have immediate knowledge of previously undisclosed fraud.
- Have Strong Evidence: Material evidence such as internal documents, emails, invoices, or fiscal records is needed to substantiate fraudulent claims.
- Have Strong Evidence of Fraud that Meets the Legal Definition: To form the basis of a qui tam lawsuit, the alleged fraud must be done knowingly, meaning the defendant acted with deliberate ignorance or reckless disregard for the truth.
- Are Acting Within the Statute of Limitation: A qui time claim must be filed within 6 years of the fraud or 3 years of the government becoming aware of it but must not be filed any more than 10 years after the fraud occurred.
- Have a Qui Tam Attorney: Unless you are an attorney yourself, you will need a lawyer to proceed with a qui tam action. An experienced whistleblower attorney can help you to file your claim, protect yourself from potential retaliation, and present evidence effectively.
How to File a Qui Tam Lawsuit
If you believe you meet some or all of the above requirements, you can reach out to a qualified whistleblower attorney at McCune Law Group today.
At MLG, our attorneys are no strangers to the complexity of whistleblower cases. We have experience successfully working with whistleblowers in major industries like healthcare and tech, and we’re dedicated to protecting their best interests throughout the legal process. Combining the resources of a major law firm with the individualized care of a boutique service, MLG is unintimidated by major defendants and prepared to stick by you every step of the way. Our track record speaks for itself: we’ve successfully won cases against Fortune 500 companies like Ford and Pfizer and secured over $1 billion in settlements for clients across all our practice areas.
Before pursuing a qui tam lawsuit, contact the legal team at MLG from a free evaluation. We listen to you, so you can make your voice heard.
If you have knowledge of fraud or wrongdoing and are prepared to come forward, contact our team by calling (909) 757-1812.