What is a qui tam action and who can file one?

During the Civil War, Congress enacted the False Claims Act because, at that time, military contractors were committing fraud by supplying the government with defective goods and price gouging. The Act contained a qui tamprovision that allows a private citizen (whistleblower) to bring suit against someone who he or she suspects has defrauded the government.

In qui tamactions, the person who brought the action is entitled to a portion of the recovery, which can involve very large sums of money. This practice was instituted to encourage whistleblowers to come forward.

In 1986, Congress amended the Act and made it easier for people to file qui tamsuits. The 1986 amendments protect whistleblowers from retaliations against them including those who are, “demoted, suspended, threatened, harassed or in any other manner discriminated against in the terms and conditions of employment”.

Today, many different people and groups of people bring qui tamactions. These people are known as “relators”. Employees, private and federal, both former and current, often act as plaintiffs. In addition, competitors, public interest groups, subcontractors, and state and local governments can lodge a “qui tam” complaint.

Anyone who misuses federal monies can be named as a defendant in a qui tamsuit; however, many defendants come from the medical fields including doctors, hospitals, and HMOs. These cases involve Medicare and/or Medicaid fraud.

If you are thinking of filing a qui tamaction, you will do well to consult a whistleblower actions attorney to find out exactly where you stand. At Greer Injury Lawyers in Memphis, we can offer you the advice you need to make your decision. Call us toll free today at 888-470-9143 to schedule a free case consultation.