What is a qui tam lawsuit?

A qui tam lawsuit is a type of legal action in which a private individual, known as a "relator," acts on behalf of the government to sue an individual or organization thought to have violated the law – typically in the form of fraud. This type of lawsuit is specifically permitted by the False Claims Act (FCA). In Virginia, qui tam lawsuits allow a person to bring a case forward to recover money from anyone who has submitted false or fraudulent claims to the state or federal government for payment. In a qui tam lawsuit, the relator is entitled to a portion of the recovery if the government is successful in recovering any money as a result of the lawsuit. This incentivizes individuals to report any contract, grant, or program fraud they may encounter, as they can potentially benefit financially if their lawsuit is successful. The Virginia False Claims Act contains specific language regarding qui tam lawsuits. It enables a relator to sue on behalf of the state or the federal government, and allows the relator to keep between 15 and 25 percent of the recovery in the case. The Act also includes provisions that prevent an employer from retaliating against a whistleblower. Qui tam lawsuits are helpful in protecting the public interest and preventing fraud. By incentivizing and protecting whistleblowers, learning of fraud is made easier and more likely to occur, resulting in more successful qui tam lawsuits. Therefore, qui tam lawsuits allow for more effective enforcement of the Virginia False Claims Act and help the government recover money it is rightfully owed.

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