Practice Overview
The False Claims Act authorizes private citizens to file lawsuits on behalf of the United States against those who presented a false or fraudulent claim for payment to the U.S. government. These lawsuits are called “qui tam” actions and a citizen who brings one is called a “whistleblower” or “relator.” They are filed in federal court under seal – meaning the defendant is not yet served and the lawsuit is not public – while the government decides whether to take over the case as its own. If the case is successful (whether litigated by the government or the whistleblower), the relator is entitled to a portion of the government’s recovery (typically between 15-30%), as well as reasonable expenses and attorneys’ fees.
Among other things, a “claim” under the False Claims Act is defined as any request for money made by a contractor, grantee, or other recipient, to the United States government. Some examples of conduct covered by the False Claims Act include health care fraud (including Medicare or Medicaid fraud), military or other government contracting fraud, bid rigging, and charging inflated prices to the government. Typically, a defendant is liable to the government for a penalty of at least $5,000 and up to $10,000, plus three times the amount of damages the government sustained because of the act of that defendant, per claim.
The False Claims Act also specifically forbids retaliation against those who bring a qui tam action
