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What is a Qui Tam Action?

A Qui Tam (kwi tom) action is a lawsuit brought by an individual plaintiff on behalf of the United States under the False Claims Act, charging fraud by government contractors or others and seeking the recovery of damages for the U.S. Government. The term qui tam comes from the Latin phrase "qui tam pro domino rege quam pro sic ipso," roughly translated as "who sues on behalf of the king as well as for himself." A plaintiff, known as the "relator", who brings a Qui Tam suit, is someone who has uncovered fraud against the U.S. government and, by implication, U.S. taxpayers. As a reward for their efforts, relators receive a portion, between 15 and 30%, of the amount of money recovered, which is often substantial.

Lincoln's Legacy -- The False Claims Act was originally passed in 1863 at the urging of President Lincoln in response to complaints about fraudulent suppliers who sold faulty equipment to the Union army. An important amendment to the Act was passed in 1986, which established an easier burden of proof, lengthened the time in which a claim may be brought, provided for treble damages, increased the amount awarded to the relator, and added protection from retaliation. The U.S. Department of Justice (U.S. DOJ) can intervene and litigate the case with the relator, or decline to participate. Almost any person, business, or government entity may be a defendant in a Qui Tam suit. The most common defendants are government contractors and subcontractors, medical providers under Medicare/Medicaid, universities, and state and local governments.

Recent Developments * Some recent Qui Tam suits in Minnesota and around the country against health care providers and defense contractors have resulted in settlements or verdicts in the hundreds of millions of dollars. A significant area of growth in Qui Tam litigation has been in the area of healthcare fraud as relators have uncovered practices of overcharging the government's Medicare and Medicaid programs. Law firms typically represent Qui Tam plaintiffs on a percentage contingency fee, with no fee being paid unless there is a settlement or recovery.

If you think you have uncovered a case of fraud by any party contracting with or involved in a federal government program, please contact V. John Ella at Mansfield, Tanick & Cohen.