Whistleblower and qui tam claims play an important role in helping the United States government uncover fraud and protect taxpayer dollars. Whistleblowers often come forward with legitimate concerns, but many do so without fully understanding their legal protections, the personal risks involved, or what the process actually looks like.
If you are considering a whistleblower or qui tam claim, understanding the structure, timing, and consequences of these cases is critical before taking any next steps.
What is a Qui Tam Claim?
A qui tam lawsuit is a specific type of whistleblower action brought under the federal False Claims Act. It allows a private individual, called a relator, to file a lawsuit on behalf of the United States when they believe a company has knowingly submitted false claims for government funds.
These claims commonly arise in situations involving improper billing, misuse of federal loan or assistance programs, or false certification made to obtain government payments.
Whistleblower Protections and Their Limits
Federal and state whistleblower laws prohibit retaliation against individuals who report suspected wrongdoing. Prohibited retaliation can include termination, demotion, harassment, or any other adverse employment actions taken because a person raised a concern or reported misconduct.
However, these protections are not automatic. Whether they apply often depends on how concerns are reported, what information is disclosed, and when disclosures occur. Missteps early in the process, such as reporting allegations publicly or sharing information improperly, can limit both legal protections and potential recovery.
Timing and Confidentiality are Critical
Qui tam claims must be filed under seal and handled with strict confidentiality. This gives the government time to investigate the allegations without alerting the subject of the investigation.
Public disclosure of information (intentional or otherwise) can disqualify a whistleblower from pursuing a claim altogether. For that reason, speaking with counsel before taking action is one of the most important decisions a whistleblower can make.
What to Expect
Whistleblower cases are rarely quick. They often involve extended periods of investigation, limited communication while a case is under seal, and uncertainty about whether the government will ultimately intervene.
Understanding these realities from the beginning can help a whistleblower remain informed. What to learn more? We've counseled relators, or whistleblowers, in multiple qui tam claims in recent years, including helping the government recoup over $1.7 million and approximately $900 thousand in various actions.
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all about qui tam claims and the False Claims Act.
