Qui Tam - An Overview
If you have information that a company or individual has defrauded the federal government, you may be able to file a lawsuit known as a qui tam action. A qui tam action helps the government recover money that has been lost due to false claims and fraud. The individual who brings the qui tam action receives a percentage of the monetary award if the defendant is found liable to the government. If you have knowledge of fraud against the government, seek legal counsel from an experienced attorney.
Bringing a Qui Tam Action
Under the federal False Claims Act, an individual with knowledge of misconduct can file a qui tam action. A qui tam action alleges that a false claim has been submitted to the government. False claims include knowingly overcharging the government for products or services; charging for services that were never provided; selling something and not delivering it; making false reports about the quality of a product; failing to properly test a product; or another scheme intended to cheat, defraud or steal from the government.
When a private individual initiates the case, the complaint is filed "under seal." This means that the contents of the complaint are not released to the public for a period of time. A copy of the complaint is provided to the government and remains confidential for at least 60 days so that the government can complete an investigation. If the government then decides to participate in the case, federal attorneys will become involved. If the government does not intervene, the individual who filed the case usually can continue without the government, although the government retains the right to get involved at a later time.
Penalties and Damages in the Qui Tam Case
The defendant will be held liable if the judge or jury finds that a false claim was submitted with the knowledge that it was false; in deliberate ignorance of the truth or falsity of the claim; or with reckless disregard of the truth or falsity of the claim. The defendant will have to pay penalties and treble damages (triple the amount of damages the government sustained because of the defendant's acts). The court may also order the defendant to pay the costs, expenses and attorney's fees incurred in bringing the lawsuit.
Award for Bringing the Qui Tam Action
The False Claims Act includes an incentive for filing a qui tam action. The person who brings the action is usually entitled to receive 15 to 30 percent of the recovery. The exact amount depends on the circumstances of the case and the decision of the court.
Conclusion
Qui tam actions serve important governmental and public interests. They encourage anyone with knowledge of misconduct to protect the public treasury and the integrity of government contracts. If you know of fraud or dishonesty in a contract with the government, contact a qui tam litigation attorney.
Copyright ©2009 FindLaw, a Thomson Business
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
