Qui Tam Settlement: How False Claims Act Cases Resolve

The vast majority of False Claims Act cases — whether the government intervenes or not — resolve through settlement rather than trial. Settlements avoid litigation risk for defendants, give the government recoveries without years of court fights, and can compensate relators when cases succeed.

During or after the seal period, DOJ, defendant counsel, and relator's counsel may negotiate global settlements covering civil penalties, damages, and corporate integrity agreements. Relators participate through their attorneys; the government typically leads when it has intervened.

Settlement agreements include a relator share — often within the 15–30% range — subject to court approval under the False Claims Act. Judges review whether the share is fair given the relator's contribution. Amounts vary widely by case size and stage of resolution.

Settlements usually trigger unsealing of the case and a public DOJ press release. Whistleblowers should expect their role may become known, though confidentiality during seal is still critical early on. For tax treatment of awards, consult a tax professional.