Awards in Qui Tam Actions
Qui tam actions have the potential for producing substantial monetary judgments against defendants. If a qui tam action is successful, a portion of the award will go to the person who initiated the action. A knowledgeable attorney can help you assess the strength of your qui tam case.
Damages and Penalties
If the defendant in a qui tam case is found to have violated the federal False Claims Act, it will be ordered to pay three times the amount of monetary damages sustained by the government. The defendant also must pay a $5,000 to $10,000 penalty per false claim submitted. The penalty is set by the court and is in addition to the treble damages.
Award for Bringing the Qui Tam Action
The true plaintiff in a qui tam action is the government because the government is the party that suffered the injury. The person who brings the action (the "relator") does so on behalf of the government. Even so, the False Claims Act provides a significant monetary incentive to private persons who bring qui tam actions. The relator who initiates a successful qui tam lawsuit receives a percentage of the penalty and damages. The exact amount depends on the circumstances of the case:
- 25 to 30 percent if the government did not intervene in the action.
- 15 to 25 percent if the government intervened in the action.
- 10 percent or less if the government intervened in the action and most of the information relevant to the lawsuit was publicly available.
- A reduced amount if the relator planned and initiated the false claims that formed the basis of the qui tam action. If the relator is convicted of a crime associated with the false claims, the relator will not receive anything.
The percentage the relator receives is determined by the court after it considers the overall situation, including the relator's contribution to the action. The relator may also be awarded reasonable expenses and attorney's fees.
Contact an Attorney
The right to pursue a qui tam action serves important purposes. By encouraging private citizens to expose false claims against the government, it increases the government's recovery of funds that it otherwise would not have collected. In addition, it reinforces the ideal of honest business practices by entities that deal with the government. By awarding relators a percentage of the monetary judgment, it influences people with firsthand knowledge to come forward.
Because the potential reward for a relator is significant, it is vital to consult an attorney who is knowledgeable in qui tam litigation. An attorney can help you provide relevant evidence and valuable assistance to the government. Contact a lawyer for more information on the nature of qui tam actions and advice on how to proceed.
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