What are Qui Tam (Whistleblower) Lawsuits?~2 min read

A Qui Tam lawsuit is brought by a whistleblower in federal or state court pursuant to federal and state false claim act laws. They’re often seem in the context of overbilling in Medicare fraud or Medicaid fraud, but fraudulent use of public funds can include misappropriation, embezzlement or other fraudulent acts. Texas has its own Texas False Claims Act. If Qui Tam Litigation is successful, the whistleblower can be rewarded by the government by payment of a share of any funds recovered. This is ordinarily a sum equal to 15 to 25 percent of the total recovery. If you believe that your employer is defrauding the federal or state government, the attorneys at Springer and Lyle are available to explain your rights to you.

False claims acts are designed to protect the jobs of whistleblowers due to the personal and professional risks that they might be exposed to. It’s customary for a private individual to bring a Qui Tam action against an employer. The lawsuit isn’t immediately available to the defendant or the public though because the suits are initially filed under seal. This allows federal or state law enforcement time to investigate the allegations. Should the government feel that there are sufficient allegations and documentation of wrongdoing, it will join in on the whistleblower’s lawsuit. If the government elects not to join in the lawsuit, the whistleblower may continue on with it in their own individual capacity. For most whistleblowers, it’s highly preferable that the government join in. Under those circumstances, the whistleblowermight share in a higher percentage of any sums recovered.

A defendant found guilty of a federal False Claims Act violation could be ordered to pay up to three times the amount of the government’s losses plus fines. Under Texas law they can be required to pay up to two times the amount of the government’s losses plus fines.A person who is contemplating a Qui Tam lawsuit must weigh their decision very carefully. If you’re considering bringing a whistleblower lawsuit against your federal or state employer and have evidence of wrongdoing, contact Springer and Lyle for a free consultation and case evaluation. All discussions are privileged and will be held in the highest of confidence. We realize the seriousness of your allegations and understand the sensitivity of your situation.