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A person writes on paper beside a wooden gavel and scales of justice on a glass desk, suggesting a legal or courtroom setting—perhaps consulting with a New York City tax whistleblower lawyer or discussing important documents related to IRS cases.
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What Is a Qui Tam Lawsuit?

Have you witnessed fraud against the government and wanted to take action against it, yet felt powerless to stop it? There is a powerful legal tool at your disposal that empowers private citizens to take a stand. At Whistleblower Partners, LLP, we are dedicated to helping individuals like you use this tool to expose wrongdoing and protect taxpayer money.

A qui tam lawsuit allows an individual from the private sector to sue on behalf of the government to recover money lost to fraud. These lawsuits are a core part of the False Claims Act (FCA), America’s most successful whistleblower reward program.

How Does a Qui Tam Lawsuit Work?

The term “qui tam” comes from a Latin phrase meaning “he who sues on our Lord the King’s behalf as well as his own.” This concept dates back centuries but was formally adopted in the U.S. during the Civil War as a means of combating fraud against the Union Army. As one publication reported in 1863, profiteers were delivering sawdust instead of gunpowder, “spavined beasts and dying donkeys” instead of horses.

Today, the process follows specific steps designed to protect both the whistleblower and the integrity of the investigation.

Filing the Complaint

The first step is filing a complaint “under seal” in a federal district court. This means the lawsuit is kept confidential, and the defendant is not notified. Only the court and the Department of Justice (DOJ) know about the case. This secrecy protects the whistleblower from potential retaliation while the government investigates.

The Government Investigation

After the complaint is filed, the DOJ has a 60-day period (which is often extended) to investigate the allegations. During this time, the DOJ will likely interview the whistleblower, subpoena documents, and speak with other witnesses. The whistleblower’s identity remains secret throughout this phase.

The Decision to Intervene

At the end of its investigation, the government decides whether to intervene, or join the lawsuit.

  • If the government intervenes, it takes the lead in litigating the case. The whistleblower and their attorneys remain involved and are entitled to 15-25% of any money recovered.
  • If the government declines to intervene, the whistleblower has the option to pursue the case on their own on behalf of the government. In this scenario, the potential reward for the whistleblower increases to 25-30% of the recovery.

Why File a Qui Tam Lawsuit?

Qui tam lawsuits are a highly effective way to combat fraud against the government. This includes everything from Medicare and Medicaid fraud to contractors overcharging on defense contracts. By coming forward, whistleblowers have helped the government recover tens of billions of dollars and fought for integrity across numerous industries.

In addition, the False Claims Act includes provisions to legally protect whistleblowers from retaliation by their employers for reporting fraud. This grants potential whistleblowers the legal security to be able to step forward confidently.

Could Initiating a Qui Tam Suit Be Your Next Step?

Filing a False Claims Act case requires your attorney to prepare and file in court a detailed complaint laying out the fraud clearly and with adequate support. Unless the case settles, it will need to be litigated against often powerful companies. Keep in mind that your attorneys must have deep expertise in whistleblower law as well as experience in complex commercial litigation against well-financed corporations. Not all whistleblower firms have both. Whistleblower Partners does.

Qui tam lawsuits can be complex, but they are vital for the benefit of both the American government and taxpayers. If you are hesitant about starting a case or wonder if you have enough evidence, trust the experienced attorneys at Whistleblower Partners, LLP to guide you every step of the way. Contact us for a confidential consultation to discuss your case and put the power of a qui tam lawsuit to work for the greater good.

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