Qui Tam

"Qui Tam" are the first words of a Latin clause referring to the plaintiff as "one who sues as much for the state as for himself or herself." It is a provision of the Federal Civil False Claims Act that allows a private citizen to file a suit, in the name of the U.S. Government, charging fraud by government contractors and other entities that receive or use government funds. These private citizens, known as "relators" or "whistleblowers," relate information to the government and share in any money recovered.

Qui tam lawsuits have been, and continue to be, a very effective and successful tool in combating government procurement and program fraud. Bolstered by amendments passed by Congress in 1986, the law has armed private citizens who have independent and direct knowledge of fraud, with a weapon to prosecute government contractors and others who are defrauding the Government. Private citizens, however, are not the only ones that may bring qui tam lawsuits; a wide variety of relators may bring suit.

Things to Consider If You Believe You Have a Qui Tam

When deciding if a potential False Claims Act (FCA) case is meritorious, a potential whistleblower should consider the following things:

• Suspicion is not enough; the whistleblower should have actual knowledge of the fraud. In addition to the whistleblowers personal knowledge, evidence is also necessary in most cases. The evidence of the fraud has to be specific, identifying the "who, what, when and where" of the fraud. Assertions of false claims usually require documentation and any evidence that can be gathered will be valuable when presenting your case to the government.
• The fraud cannot be tax fraud. Tax fraud is specifically exempt from prosecution under the False Claims Act.
• The whistleblower's evidence of the fraud cannot come from a publicly disclosed source such as a newspaper, TV, magazine, radio, court record, administrative hearing, etc., unless the relator meets the "original source" test - the relator had "direct and independent knowledge" of the information on which the allegations were based and the relator "voluntarily provided the information to the government" prior to filing the action.
• Federal money must be involved, or, in a state with a state False Claims Acts, state money must be involved. If you are unsure whether your state has a False Claims Act, contact us by clicking here.
• The fraud cannot involve a state defrauding the Federal government, though it can involve a County or City defrauding the Federal government.
• The company or entity must have submitted False Claims to the government knowingly. However, deliberate indifference to the truth of a claim, or acting with reckless disregard of the truth, counts as "knowing."
• Generally, the case needs to be filed within six years of the violation.
• Mere mismanagement or waste by a government contractor is not covered by the False Claims Act. Also, mismanagement or waste by the government is not subject to the False Claims Act. Only those who have made false claims to the government are subject to prosecution under the FCA.
• Government employees are not specifically barred from filing qui tam lawsuits against their own agencies, but the Justice Department usually opposes suits brought by this type of whistleblower. Such whistleblowers can expect to meet more resistance than would otherwise be the case.

Do You Need a Lawyer to Bring a Qui Tam Suit?

Technically, no. As a practical matter, absolutely.

In order for a qui tam lawsuit to succeed, a lawsuit must be filed with the federal government. While a person could file a qui tam case without a lawyer, such a case is unlikely to be as successful as it would be if an attorney is involved. Due to the volume of qui tam cases filed with the U.S. Justice Department (over 300 cases per year since 1996), and the limited number of Justice Department lawyers working on them, only those cases that are well presented with strong evidence are likely to be joined by the federal government. Your attorney's primary responsibility is to help you shape the case and present it to the Justice Department.

While the U.S. Justice Department only joins about 25% of qui tam cases, the cases it does participate in are settled or won over 85 percent of the time. If the Justice Department declines to join your qui tam case, the odds of success drop to 20 percent. While this does not make the suit impossible, it does emphasize the importance of using an attorney from the beginning to present the government with the strongest case possible.

How Can You Afford a Lawyer?

Qui Tam attorneys usually work for a contingency fee. This means that, as a whistleblower, you pay nothing at all to have a lawyer examine your case. If we feel you have a case, we will work with you to determine the contingency fee (i.e. the portion of the relator's share) that we will receive should the case prevail in court.

What does an attorney bring to the table that justifies a portion of the relator's share? The short answer is legal expertise, experience, and contacts with the people who can assist you during the development and prosecution of your case. Many cases have been won or lost based on discussions and negotiations with the government. At Strom Law Firm, our attorneys have the experience and federal government contacts to ensure that your case goes smoothly.

If you have direct knowledge of fraud against the government and believe you have a qui tam case, contact us by clicking here.

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