Qui Tam Cases
Certain cases in which a person reports fraudulent activity against the Government are sometimes referred to as “Whistleblower cases” or “Qui Tam” actions. Qui Tam is a commonly used abbreviation for the Latin phrase "Qui Tam pro domino rege quam pro si ipso in hac parte sequitur," which means "Who sues on behalf of the King, as well as for Himself."This area of law allows you, a private citizen, to file a lawsuit on behalf of the Government to recover the losses caused by the government fraud. You are able to do so under certain statutes that provide financial incentives to you, if the government is successful in pursing your lawsuit for you. An example of our success in representing relators is shown in the recent Novartis/Chiron False Claims Act settlement (see press release here).
It is estimated that almost 10% of the United States’ annual budget is paid to companies or persons who are defrauding the government. Typical types of fraud include overcharging for products sold to the government, billing the government for services not provided or overbilling for services. Of course, Qui Tam actions address government contract fraud, defense contractor fraud, Medicare fraud, Medicaid fraud, or other public benefit fraud.
Recently-available Department of Justice statistics show that the average recovery by the government, where there has been a recovery, is $8.6 million, with $1.167 million as the average award to the person starting the lawsuit.
While the statute is an effective tool against fraud, it is limited in scope. For example, the following are not actionable under the False Claims Act:
- Certain actions against armed forces members, members of Congress, members of the judiciary, or senior executive branch officials.
- Claims, records or statements made under the Internal Revenue Code of 1986.
- Suits based upon allegations or transactions that are already the subject of a civil suit or administrative money penalty proceeding to which the government is already a party.
- Cases based upon allegations or transactions that have been publicly disclosed unless you have direct and independent knowledge of those allegations or transactions, and have provided the information to the government prior to filing suit.
- Mismanagement by government contractors that does not rise to the level of knowingly-made false statements to the government for purposes of getting a claim paid.
- The government's own waste. Only those who have made false claims to the government are proper parties under the statute.