A qui tam action is a legal mechanism that allows a private individual, known as a relator or whistleblower, to file a lawsuit on behalf of the government against individuals or entities that have defrauded or wronged the government. Qui tam actions are typically brought under statutes that provide for civil remedies against those who have committed fraud against the government, such as the False Claims Act in the United States. In qui tam actions, the government has the option to intervene and take over the prosecution of the case, but even if it declines, the relator can continue to pursue the lawsuit on behalf of the government. If successful, the relator may be entitled to receive a portion of any damages or penalties recovered, providing an incentive for individuals to report and prosecute fraud against the government. Qui tam actions play a vital role in uncovering and deterring fraud, waste, and abuse of taxpayer funds in various sectors, including healthcare, defence contracting, and government procurement.
(kwee tam) n. from Latin for “who as well,” a lawsuit brought by a private citizen (popularly called a “whistle-blower”) against a person or company who is believed to have violated the law in the performance of a contract with the government or in violation of a government regulation, when there is a statute that provides for a penalty for such violations.
Qui tam suits are brought for “the government as well as the plaintiff.” In a qui tam action, the plaintiff (the person bringing the suit) will be entitled to a percentage of the recovery of the penalty (which may include large amounts for breach of contract) as a reward for exposing the wrongdoing and recovering funds for the government. Sometimes the federal or state government will intervene and become a party to the suit in order to guarantee success and be part of any negotiations and conduct of the case. This type of action is generally based on significant violations that involve fraudulent or criminal acts, not technical violations and/or errors.
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This glossary post was last updated: 13th April 2024.
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