What is a qui tam lawsuit?

A qui tam lawsuit is a type of whistleblower law in California that allows a private citizen to sue on behalf of the government when they have evidence of fraud or other wrongdoing. The person filing the suit, known as a “relator,” can receive a percentage of any settlement or fines resulting from the lawsuit up to 25 percent. The federal False Claims Act and many state false claims acts serve as qui tam laws. These laws are in place to encourage private citizens to report any possible fraud or wrongdoing in government programs and contracts. Qui tam lawsuits may involve cases concerning fraudulent Medicaid claims, Medicare fraud, government contracts, or even government purchases of goods and services. In a qui tam lawsuit, the relator files a complaint with the court under seal. This means that the complaint is not available to the public. The court then informs the government of the lawsuit, and the government has a certain amount of time to decide whether to join the lawsuit. The government may then choose to join the lawsuit and would be responsible for prosecuting the case. If a settlement is reached as a result of the qui tam lawsuit, the whistleblower is eligible to receive a proportionate amount of the settlement or fine. The qui tam lawsuit is a powerful tool used by the government to collect money from persons or companies who have committed fraud against the government.

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What is a qui tam lawsuit?

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