Qui Tam - Whistleblower Rewards

Qui Tam is an action that allows individuals (known as relators or whistleblowers) to bring a lawsuit against other individuals or corporations who are acting in such a way as to swindle the government out of money. There are many types of fraud which affect the government each and every year, but one of the largest is within the medical sector.

According to the latest statistics, more federal qui tam cases were filed in 2011 than in any other year and 638 new whistleblower complaints were filed under the False Claims Act proviso of Qui Tam. These actions generated $2.8 billion for the government.

Qui Tam lawsuits
Fraud against the government is big business and one area that the government simply cannot police single handedly and so it relies on Joe public to report any such goings on to the relevant authorities who can then instigate a full and proper investigation.

Why would anyone go to the bother of reporting a fraudulent action? What's in it for them?

Becoming a whistleblower or relator can be a tricky business and often that person's career can be jeopardised and they may even become alienated from family and friends. However exposing dodgy dealings can reap you financial rewards and make your efforts worthwhile.

When a person sues the corrupt individual or corporation on behalf of the government they become known as a relator. A qui tam lawsuit can either be filed on behalf of the state government or the federal government, although currently there are 28 states with no qui tam statutes. Whisteblower cases are extremely difficult to deal with and no person should try and do this on their own. Instead they need to find experienced qui tam lawyers who have had previous success in filing a qui tam suit and also in the particular field that you have uncovered the alleged fraud.

When a relator comes forward, the case is filed under seal, which means that it is kept secret from everyone bar the government. This is so that the Department of Justice has time to investigate. There is usually a minimum period of around 60 days but this can be extended by the courts. During this time not even the individual or company being accused of the fraud will know that there is a Qui Tam case against them.

Whistleblower rewards

How much a whistleblower is likely to receive depends on various considerations including the quality of the work by the representing lawyer and the quality of the case put forward. If the government gets involved and the case is successful, the whistleblower stands to receive between 10-15% of the total amount recovered, if the government doesn't get involved then this sum is more likely to be between 25-30% of the total figure.

In a recent case (December 2011) involving Medtronic, Inc, one of the world's largest suppliers of medical devices, a $23.5 million settlement was agreed with the Department of Justice and the Office of the Inspector General for the Department of Health and Social Services and 4 relators. The qui tam suit related to pacemakers and implantable cardioverter defibrillators (ICD's).

Both of these suits alleged that Medtronic were in violation of the False Claims Act by paying certain physicians kickbacks for implanting its ICDs and pacemakers into beneficiaries of Medicaid and Medicare.

Three of the relators share a settlement of around $3.8 million and the fourth relator receives $160,160.

Fraud is big business and the government needs all the help that it can get to try and reduce the problem. If everyone does their bit and remains vigilant and has the courage to come forward and report serious misdoings, then under qui tam, not only will you be making a difference to society, but you stand to earn yourself a generous reward for your efforts.