Qui tam suits are a type whistleblower case that is brought under False Claims Act. This law rewards whistleblowers who successfully recover funds from fraud. There are also false claims acts in many states that prohibit fraud against their state governments. These can be enforced by qui tam suits.
Qui tam suits (also known as qui tam actions) are a powerful tool for whistleblowers to assist the government in stopping fraud and recovering money for the US Treasury. Qui tam claims can include Medicare fraud, Medicaid fraud, defense contractor fraud, and procurement fraud. Qui tam lawsuit have allowed the recovery of billions from taxpayers and the US Treasury.
While whistleblowers can report tax frauds or securities laws violations, and commodities law violations under US whistleblower reward and protection programs, qui tam lawsuits are not allowed.
What is a QUI TAM RELATOR?
The legal term for the individual or entity who files a qui-tam lawsuit is a “relator”. A qui tam relative can be multiple individuals, a business or partnership. The False Claims Act gives qui tam relators certain rights, including the right to pursue qui-tam cases by themselves, even if the government declines.
Since 1986, when the False Claims Act was strengthened and amended, Qui Tam relators have been awarded rewards in excess of $8 billion.