A qui tam lawyer represents you in a lawsuit against a company or individual you believe has defrauded the government
A qui tam lawsuit is a specific type of case brought under the False Claims Act, a federal law that lets private citizens sue on behalf of the government when they have evidence that someone has submitted false claims for government money. The person bringing the case is called a relator. A qui tam lawyer handles these cases, which typically involve contractors, healthcare providers, or other businesses that receive federal funds.
The key difference from other lawsuits is that you are suing in the government's name, not just your own. If you win, the government recovers money, and you receive a percentage of what is recovered—typically between 15 and 30 percent, depending on whether the government joins the case. The government has the option to take over the lawsuit or let your lawyer handle it alone.
These cases often take years to resolve. They can be expensive to pursue, which is why most qui tam lawyers work on contingency—meaning they are paid only if the case succeeds. You should expect the process to involve document review, depositions, and potentially settlement negotiations before trial.
Key Takeaways
- A qui tam lawsuit lets you sue a company or individual for defrauding the government, and you can receive a percentage of any money recovered.
- These cases are filed under the False Claims Act and typically involve federal contractors, healthcare providers, or businesses receiving government funds.
- Most qui tam lawyers work on contingency, meaning they take payment only if the case succeeds and money is recovered.
- The government can choose to join your lawsuit or let your lawyer pursue it independently, which affects the timeline and your potential recovery percentage.
- Cases often take multiple years and require substantial documentation and evidence before settlement or trial.
What kinds of fraud trigger a qui tam case
Qui tam cases most often involve healthcare fraud, defense contracting fraud, or grant fraud. In healthcare, this might include billing Medicare or Medicaid for services not actually provided, billing for unnecessary procedures, or submitting false cost reports. In defense contracting, it could be submitting inflated invoices, using substandard materials, or falsifying test results on military equipment.
You do not need to be an employee to file a qui tam case, though many relators are current or former workers who witnessed the fraud firsthand. You can also be a competitor, a customer, or someone who learned about the fraud through public records. However, there are restrictions: if the information you have is already public knowledge from a government investigation or a news report, you may not be able to proceed, depending on the details and timing.
The fraud must involve a false claim submitted to the federal government for payment. This includes claims to Medicare, Medicaid, the Department of Defense, the Veterans Administration, federal research grants, or any other federal program that pays out money.
How the qui tam process works from start to finish
The lawsuit begins when your lawyer files a complaint under seal, meaning it is kept confidential from the defendant. The government then has 60 days to decide whether to join the case. During this sealed period, which typically lasts several months, the government investigates and your lawyer gathers evidence. You cannot publicly discuss the case during this time.
If the government decides to join, called intervention, it takes the lead role and your lawyer works alongside government attorneys. If the government declines to intervene, your lawyer can continue alone, though this is riskier and more expensive because your lawyer bears more of the cost. Either way, the defendant is eventually notified and the case moves into discovery—the phase where both sides exchange documents and take depositions.
Discovery can last one to three years depending on the complexity and size of the fraud. Your lawyer will need documents from you, internal company records, billing records, and communications related to the alleged fraud. Settlement discussions often happen during or after discovery. If no settlement is reached, the case may go to trial, though most qui tam cases settle before that point.
What you need to bring to a qui tam lawyer
Before meeting with a qui tam lawyer, gather any documents that show the false claims or fraudulent conduct. This might include billing records, invoices, emails, internal memos, contracts, or government payment records. You do not need a complete case—just enough evidence to show the lawyer there is a credible basis for the claim.
Be prepared to explain your connection to the fraud. Were you an employee? A contractor? A customer? How did you learn about it? The more specific you can be about dates, amounts, and the people involved, the stronger your initial consultation will be. Your lawyer will also want to know whether you have already reported the fraud to the government, the company, or anyone else.
Understand that your lawyer will likely ask you to sign a retainer agreement that outlines how fees work, what your responsibilities are, and what happens if the case settles or goes to trial. Most agreements specify that your lawyer takes a percentage of the recovery, and you may also be responsible for case costs like informed witnesses or court filing fees, though many lawyers advance these costs.
The costs and timeline you should expect
Qui tam cases are expensive. A single case can cost $100,000 to $500,000 or more in legal fees and informed costs before settlement or trial, depending on complexity. Because most qui tam lawyers work on contingency, they absorb these costs upfront and recover them from the settlement or judgment. This means you typically pay nothing out of pocket, but your recovery percentage is reduced by these expenses.
The timeline varies widely. A straightforward case might settle in two to three years. A complex case involving multiple defendants or large amounts of fraud can take five to ten years or longer. The sealed period alone can last six months to two years while the government investigates. You should plan for a long process and be prepared for the possibility that the case may not succeed.
If you win, the amount you receive depends on the total recovery and whether the government intervened. With government intervention, relators typically receive 15 to 25 percent of the recovery. Without intervention, the range is usually 25 to 30 percent. The government keeps the rest. If the defendant appeals or the case is reversed, your recovery could be delayed or reduced.
How to find and evaluate a qui tam lawyer
Qui tam law is specialized. Not all lawyers who handle civil litigation can effectively pursue these cases. Look for lawyers or firms that list qui tam or False Claims Act experience on their website or in legal directories. Bar associations sometimes maintain referral lists for specific practice areas, and you can also search the Public Citizen database of qui tam cases to see which lawyers have filed cases in your area.
When you contact a lawyer, ask about their experience with cases similar to yours. How many qui tam cases have they filed? How many have settled or gone to trial? What was the outcome? A lawyer who has handled five cases in your industry is more valuable than one who has handled fifty cases across many different industries.
Ask about the fee structure in detail. What percentage do they take? Who pays for informed witnesses and depositions? What happens if the case is dismissed or loses at trial? Some lawyers may ask you to sign a non-disclosure agreement or confidentiality clause, which is standard. Make sure you understand what you can and cannot discuss about the case.
Risks and reasons a qui tam case might not move forward
Not every potential fraud case becomes a qui tam lawsuit. Your lawyer may decline to take the case if the evidence is weak, if the fraud is too small to justify the cost, or if the information is already public in a way that bars the lawsuit under the False Claims Act's public disclosure bar. This bar prevents cases based on information already known to the government or disclosed in court filings, congressional reports, or media.
There is also the risk that you lose. If the court finds that no fraud occurred or that the defendant did not knowingly submit false claims, you recover nothing and your lawyer absorbs the cost. Defendants often have substantial resources to defend themselves, and litigation is unpredictable.
Another consideration is retaliation. While federal law prohibits employers from retaliating against employees who report fraud, retaliation can still happen and may require a separate legal action to address. If you are currently employed by the defendant or a related company, consult with your lawyer about the risks before filing.
Frequently Asked Questions
Do I have to be a whistleblower or former employee to file a qui tam case?
No. You can be anyone with knowledge of the fraud—a competitor, a customer, a contractor, or someone who learned about it through public records. However, if the information is already widely known from a government investigation or news report, you may not be able to proceed. Your lawyer will determine whether the public disclosure bar applies to your situation.
What happens if the government decides not to join my case?
Your lawyer can continue the lawsuit alone, though this is riskier and more expensive because your lawyer bears more of the financial burden. Your potential recovery percentage may be higher (25 to 30 percent instead of 15 to 25 percent), but the case is harder to win without government resources. Many lawyers decline to continue if the government declines to intervene, depending on the strength of the evidence.
How long does a qui tam case typically take?
Most cases take two to five years from filing to settlement. Complex cases can take ten years or longer. The sealed period alone can last six months to two years. You should expect the process to be slow and prepare for the possibility that the case may not resolve quickly or at all.
Will I have to testify or go to trial?
You may be deposed (questioned under oath by the defendant's lawyer) during discovery. Whether you testify at trial depends on the case. Many qui tam cases settle before trial, so you may never appear in court. Your lawyer will prepare you for depositions and advise you on what to expect.
What if I am still employed by the company I am suing?
Federal law prohibits retaliation, but it can still occur. Discuss this risk with your lawyer before filing. If you are fired or demoted after filing, you may have a separate retaliation claim, but this adds complexity and cost to your case. Some lawyers recommend leaving the company first if possible.