Exploring Qui Tam Action: A Comprehensive Guide to Its Legal Framework

Definition & Meaning

A qui tam action is a legal claim filed under the Federal False Claims Act, allowing an individual to sue on behalf of the United States government. The purpose of this action is to expose and stop fraudulent activities that waste federal funds. The person who initiates a qui tam action, known as the relator or whistleblower, may receive a percentage of the funds recovered by the government, typically between 15 to 25 percent. To file such a claim, the relator must have knowledge of the fraud and cannot have learned about it through public sources like newspapers.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A healthcare administrator discovers that a hospital is billing Medicare for unnecessary procedures. They file a qui tam action to recover the funds wasted due to this fraud.

Example 2: A contractor learns that a defense contractor is submitting false claims for payment on government contracts. They file a qui tam lawsuit to expose the fraud and recover the misappropriated funds.

Comparison with related terms

Term Definition Key Differences
Qui Tam Action A lawsuit filed by an individual on behalf of the government for fraud. Involves government funds and requires an attorney.
Whistleblower An individual who reports illegal or unethical activities. May not always file a qui tam action; can report issues without legal action.
False Claims Act A federal law that allows individuals to sue for fraud against the government. Qui tam actions are a specific type of claim under this act.

What to do if this term applies to you

If you believe you have knowledge of fraud against the federal government, consider the following steps:

  • Consult with an attorney experienced in qui tam actions to discuss your case.
  • Gather any evidence or documentation that supports your claim.
  • Explore US Legal Forms for templates that can guide you through the filing process.
  • Be prepared for a potentially lengthy legal process, and understand that you may need to provide testimony.

Quick facts

Attribute Details
Typical Fees Varies by attorney; often a contingency fee arrangement.
Jurisdiction Federal courts for federal claims.
Possible Penalties Repayment of fraudulently obtained funds, fines, and penalties.

Key takeaways

Frequently asked questions

A qui tam action is a legal claim filed by an individual on behalf of the government to expose fraud involving federal funds.