What Is a Qui Tam Suit? How It Differs From an Ordinary Lawsuit

A qui tam suit is a federal civil lawsuit filed under the False Claims Act by a private person — the relator — who alleges that someone submitted false claims for payment to the United States.

Unlike a typical lawsuit between private parties, the government is the real party in interest. If the case succeeds, the relator may receive a percentage of the recovery, often in the range of 15 to 30 percent depending on whether the Department of Justice intervenes.

A qui tam suit is filed under seal in federal court. The defendant is not initially served publicly, and the complaint does not appear on the public docket in the ordinary way.

The Department of Justice receives the complaint and a written disclosure statement containing material evidence while it investigates. During this period, relators must follow strict confidentiality rules — discussing the case on employer systems or with colleagues can create serious problems.

Relators are usually insiders: billing specialists, nurses, compliance officers, auditors, contractors, or others with firsthand knowledge of fraud against federal funds.

You generally need specific facts, not mere suspicion. Public information alone is usually insufficient unless you qualify as an original source with independent knowledge beyond what was already disclosed.

After a qui tam suit is filed, DOJ reviews the allegations and evidence. It may intervene and lead the case, decline intervention and let the relator proceed with private counsel, or seek dismissal.

Government intervention strongly correlates with recovery in many cases, but intervention is never guaranteed. Some of the largest settlements began as declined cases that relators pursued with skilled counsel.

Qui tam suits often take years. Initial seal periods are typically 60 days but are routinely extended — sometimes for a year or longer — while the government investigates complex fraud.

Relators need counsel prepared for document production, government interviews, and possible litigation if DOJ declines. Patience during the seal period does not mean the case is inactive.

If you have non-public knowledge of systematic fraud against Medicare, Medicaid, defense contracts, or other federal programs, a confidential consultation with a qui tam attorney is the sensible first step.

Use personal contact methods, not employer email. Timing matters because of the first-to-file rule — delay can cost you the ability to bring a case if someone else files first on the same conduct.