A special and valuable legal instrument, qui tam lawsuits let private people—often referred to as “relators” or whistleblowers— litigate on behalf of the government in fraud-related matters. Usually under the False Claims Act (FCA), these actions are initiated and have become a potent tool for spotting and punishing false conduct, especially in sectors including government procurement, defense contracting, and health care.
Representing whistleblowers in these high-stakes situations as a qui tam lawyer can be difficult and nuanced. These are basic guidelines every qui tam attorney should apply to enhance success.
1. Examine the case’s merits carefully
Examining the merits of the case comes first and most importantly in any qui tam proceeding. Since not all whistleblower reports result in successful claims, a thorough investigation is absolutely vital.
- Evaluate the Evidence: The relator needs to have clear, non-public fraud evidence. Weak or speculative assertions are not likely to find support. Go over all the papers, emails, and letters the whistleblower has sent.
- Know the extent of the fraud. More likely to draw government attention are larger fraud cases with major financial consequences. Think about the possible losses to make sure the matter is worth looking at.
- private information: Make sure the relator bases their knowledge on original sources or own experience. Publically available data or information gathered unlawfully could throw off the case.
2. Instruct the Whistleblower
Many times, whistleblowers lack complete awareness of the complexity and hazards inherent with qui tam action. You, their attorney, have to walk them through the procedure and clearly state their rights, obligations, and possible results.
- Make sure the whistleblower is aware of the FCA’s anti-retaliation protections, which cover protection from being fired, demoted, or harassed for claim filing.
- Establish reasonable expectations: Particularly if the government becomes involved, many qui tam claims can take years to settle. Whistleblowers should understand they are pledging a drawn-out process.
- Describe the financial benefits. Successful whistleblowers under the FCA can get a percentage usually between 15 and 30%. Clearly state how the possible cash incentive is computed and any elements influencing the value.
3. File Under Seal and Honor Privacy
Qui tam cases have to be filed under seal so the government has time to look over the claims free from defendant alerting. Throughout this time, one must keep confidentiality.
File the case in federal court under rigorous standards including serving the complaint and supporting paperwork on the government but not the defendant. Ignoring the seal requirement runs the danger of weakening the case.
Avoid Public Disclosure: Refrain from sharing the case with anybody else outside the inquiry, including the media, while it is under seal. Premature disclosure might cause rejection.
4. Take advantage of government intervention
In a qui tam case, a critical question is whether the government chooses to get involved. Government intervention raises the possibility of success much more than it does of a bigger recovery.
Support government investigators’ efforts to promote intervention by means of your own actions. Organize records, give the government thorough information, and answer calls for more proof.
Know the elements influencing government intervention. Usually, the government steps in when they feel there is strong proof of fraud, large financial losses, or policy influence could affect. As you argue the argument to government lawyers, keep these elements in mind.
Get ready for non-interventions: Should the government choose not to interfere, the whistleblower might go forward on their own. Although this raises more difficulties, certain non-intervened cases have been effectively prosecuted. Analyze carefully whether the case is strong enough to go on without government support.
5. Learn the Statute of Limitations
Under the False Claims Act, qui tam lawsuits are subject to particular time restrictions; failure to file within the statute of limitations will prevent reimbursement.
Under the FCA, the case must be brought within six years of the date the fraudulent behavior occurred or three years from when the government learned of the fraud, but no later than 10 years after the fraud.
State false claims acts: There are False Claims Acts in many states with varying time restrictions. To stay clear of possible hazards, be sure you know federal and state statutes.
6. Prepare for claims of retaliation.
Apart from the qui tam litigation, whistleblowers could also have a strong claim under the False Claims Act for reprisals. For workers who experience reprisals following whistle blowing, the FCA offers a separate cause of action.
Record Retaliation Thoroughly: Make sure any actions of reprisal are recorded should the whistleblower be targeted. This can cover any other negative employment action including terminations and demotions.
Investigate separate retaliation claims. Apart from the qui tam lawsuit, you might also think about submitting a second retaliation claim, which can lead to extra damages including back pay, reinstatement, and emotional harm compensation.
7. Keep Current on Legislative Changes.
A continually changing field, qui tam law is shaped by court rulings and major legislative changes influencing case prosecution. Every attorney working in this industry must keep current on these developments.
Federal courts regularly publish decisions that either clarify or modify False Claims Act interpretations. Keep up with current case law to be sure your arguments are using the most recent legal precedents.
Track Legislative Announcements: Modifications to the FCA or related legislation can affect the filing and litigations of qui tam cases. To more aggressively handle Medicaid fraud, some states have changed their False Claims Acts, for instance.
Attend CLE, or continuing legal education: Many legal firms provide CLE classes with an eye toward qui tam and whistleblower litigation. Frequent attendance of these events will keep you current on best practices and new trends.
8. Create a capable team of experts
Particularly in fields like health care, drugs, and defense contracting, qui tam litigation sometimes involves highly specialized or industry-specific fraud. Working with professionals will help you to greatly strengthen your case.
- See Industry Experts: Technical knowledge is usually required for fraud in complicated fields as financial auditing, building contracts, or medical billing. Dealing with subject-matter specialists helps the court break down difficult data.
- Invite forensic accountants: Many times, the deception consists on advanced financial plans. Helping to track illegal activity and expose the actual scope of the fraud, forensic accountants can assist
- Work alongside other attorneys: Particularly in big cases involving several defendants or widespread fraud, qui tam proceedings often benefit from cooperation. Working with lawyers with complimentary skills will raise your chances of success.
Qui tam cases give the chance to expose fraud, safeguard public money, and honor courageous whistleblowers. The complexity and high stakes of these matters necessitate careful preparation, strategic thought, and constant attention to detail for lawyers as well. Following these basic guidelines can help qui tam attorneys optimize their chances of managing whistleblower cases and getting justice for their clients.
