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A qui tam false claims lawsuit is a type of civil action brought by whistleblowers who have evidence of fraud against the government, such as certain types of Medicare and Medicaid fraud or defense contractor fraud. The False Claims Act allows people—known as “relators”—who have knowledge of fraudulent activity to bring a case on behalf of the US government and collect part of any funds recovered from the wrongdoers involved in the fraud. If successful, relators may be eligible for between 15-30% of any money recovered from those responsible, depending on the circumstances.
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By filing a qui tam false claims lawsuit, relators are able to help recover lost funds that were stolen from taxpayers and contribute to prosecuting fraudsters who commit crimes against the US government. Since its inception in 1986, qui tam cases have managed to return more than $62 billion to federal coffers, including more than $3 billion last year alone. Filing a qui tam claim can also serve as an example to businesses and organizations that engaging in fraudulent activities comes with serious consequences—namely hefty financial penalties or even criminal prosecution for those involved in illegal schemes.
While qui tam false claims lawsuits can be used to report Medicare and Medicaid frauds, they are also effective in combating other types of fraudulent activities such as procurement fraud or violations of securities or commodities laws. Additionally, they can be used to challenge false statements made by contractors when bidding for government contracts, or charging for goods not provided or services not performed on projects funded by taxpayer dollars. Whistleblowers may also use other reward programs like IRS whistleblower awards if they come across tax frauds; however these do not allow bringing qui tam lawsuits against wrongdoers committing these activities. If you think you may be eligible to file a qui tam lawsuit, contact The Lovitz Law Firm today for more information about your legal rights and options.
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Phone: 215-999-7407
Fax: 267-319-7943
1650 Market St
36th Floor
Philadelphia, PA 19103
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