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Understanding Qui Tam Lawsuits

Qui Tam lawsuits, formally known as False Claims Actions, are a powerful legal tool used to combat fraud and abuse against the United States government. These lawsuits allow individuals – often referred to as “relators” – to step forward and report instances where a government contractor or agency has submitted false or fraudulent claims for payment. Essentially, it’s a mechanism for whistleblowers to hold those responsible accountable and, critically, to recover the money that was wrongly obtained.

The term “Qui Tam” comes from a little-known clause in the Federal Rules of Civil Procedure. It’s Latin for “he/she brings,” reflecting the fact that the relator initiates the lawsuit on behalf of the government. The government then steps in as a plaintiff to prosecute the case.

How Qui Tam Lawsuits Work

  • Reporting Fraud: A relator identifies and reports fraudulent activity, typically involving false billing, upcoding (charging higher rates), or submitting invoices for goods or services not actually provided.
  • Filing the Lawsuit: The relator files a lawsuit in federal court, alleging that the defendant knowingly submitted false claims to the government.
  • Government Intervention: The government reviews the allegations and, if they appear credible, decides to take over and prosecute the case.
  • Potential Recovery: If the government prevails, the defendant is typically ordered to pay back the fraudulently obtained funds, along with penalties and potentially attorney’s fees. The relator is then entitled to a percentage of these recovered funds – typically 15-25%, depending on the circumstances.

Common Types of Cases

Qui Tam lawsuits frequently arise in industries involving government contracts, including:

  1. Healthcare: Fraudulent billing practices by hospitals, pharmaceutical companies, and providers.
  2. Defense Contracting: False claims for military contracts involving equipment, services, or research.
  3. Social Security Administration: Claims for improper payments or fraudulent applications.
  4. Medicare/Medicaid: Billing irregularities and abuse of the healthcare programs.

Successfully pursuing a Qui Tam lawsuit requires significant legal expertise and a thorough understanding of government regulations and accounting principles. Our experienced attorneys specialize in navigating the complexities of these cases and maximizing the potential recovery for our clients. We focus on investigating potential claims, gathering evidence, and building a strong legal strategy to achieve the best possible outcome.