The attorneys of Yearout & Traylor, P.C. are well known throughout Alabama and Georgia for their work in employment law, including whistle blower (a.k.a. Qui Tam) litigation, unlawful discharge, Medicare fraud, employer fraud, etc. Our main Employment Law / Whistle Blower page gets into more detail about our practice; this page, however, details the basics of whistle blower litigation.

Qui Tam - An Overview

Do you have information that someone-a company or an individual-is defrauding the government? If you do, you may be able to bring a lawsuit known as a qui tam action. A qui tam action lets the government recover money that it lost due to fraud. An individual who brings a qui tam action is also entitled to an award of a percentage of the money recovered by the government. If you have knowledge of fraud against the government, it is essential that you seek legal counsel from experienced qui tam litigation attorneys.

Bringing a Qui Tam Action

Any individual can file a qui tam action, alleging that a false claim has been submitted to the government. A false claim could be overcharging the government, charging for services never provided, selling something and not delivering it, making false reports about the quality of a product, failing to properly test products, or any scheme intended to cheat, defraud, or steal from the government.

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Who Can Bring a Qui Tam Action?

The federal False Claims Act provides that anyone who has knowledge of fraud or dishonesty may file a qui tam action, but there are limitations. Because the purpose of a private qui tam action is to pursue fraud that has not been uncovered before, a person may not bring a qui tam action if the fraud is public knowledge (for example, if the fraud has been a subject of a prior court action, or has been the subject of testimony before an administrative agency or a legislative body) unless the person bringing the action had knowledge of the wrongdoing independent of the public's knowledge. If you have information about a fraud against the government, you need legal counsel from experienced qui tam litigation attorneys.

Who May Bring a Qui Tam Action

Any individual with knowledge of wrongdoing can file a qui tam action. Because the False Claims Act requires direct knowledge of the wrongdoing, most qui tam actions are brought by parties who fall into one of the following categories:

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Government Involvement in a Qui Tam Action

A qui tam action is brought to recover for fraud committed against the federal government. Although qui tam actions are usually brought by private citizens or entities, the federal government has a role to play in a qui tam action. The extent of its involvement will vary from case to case. An experienced qui tam litigation attorney can analyze your claim and determine how much governmental involvement may be anticipated in your case.

The Initial Investigation

A qui tam action is commenced by filing a copy of the complaint (a document that sets out the details of the wrongdoing or fraud that forms the basis of the action) with the federal District Court. A copy of the complaint is also served on the United States Attorney for the district, and on the Department of Justice in Washington, D.C. The complaint is filed and served "under seal," to prevent its contents from becoming public information.

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Awards in Qui Tam Actions

Qui tam actions carry with them the potential for substantial monetary judgments being entered against the defendants. A portion of that award will go to the person who initiated the action. An experienced qui tam litigation attorney can analyze your case, and determine how much the likely award will be.

Damages and Penalties

A defendant found liable in an action under the False Claims Act is liable to the federal government for three times the amount of monetary damages sustained by the government, plus a penalty. If the defendant fully cooperated with the government's investigation, and turned over all information about the wrongdoing within thirty days of learning about the wrongdoing, the defendant's damage liability will be reduced to twice the amount of damages sustained.

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Protection for the Whistleblower

Most qui tam actions are brought by employees of a company that has defrauded the government. Many employees who know of fraud committed by their employers are reluctant to come forward with information about that fraud, for fear of the possible actions an employer might take in retaliation. Fortunately for them, federal law contains protections for employees who report fraud on the part of their employers. An experienced qui tam litigation attorney can advise you regarding your rights and protections.

Whistleblower Protection

One reason the law requires complaints in qui tam actions to be filed under seal is to protect the identity of the person who brings the complaint. The person's identity will remain secret as long as the case is under seal.

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