May a person bring a qui tam case under the False Claims Act based on the information learned in media reports or from other public source?
No. You cannot bring a qui tam case against the government that is based on information obtained from the news media or other public source information. The person filing a qui tam claim must have direct and independent knowledge of the facts upon which the case is based.
Why is timing so critical when filing a suit based on the False Claims Act?
The False Claims Act has a first-to-file provision, meaning that only the first person to file the qui tam action can pursue the claim. In other words, your suit will be dismissed if someone else has already filed an action based on the same fraud allegations. Thus, if you believe you have a potential case, you should contact an experienced False Claims Act attorney immediately. Furthermore, the time limitations for a qui tam suit under the False Claims Act are very strict. Generally, the suit must be filed within six years of the fraud. However, different courts interpret the time limitations provisions of the Act differently, so time is of the essence when filing your claim.
Why does the government not bring qui tam actions?
Qui tam laws were designed to promote the idea of private citizens coming forward with information of fraud against the government. However, once the government is notified of the action and is aware that it may be recovering funds, it will usually participate in the action. The extent of government participation in the lawsuit varies.
Will a person lose his/her right to file a suit for whistleblower qui tam under the False Claims Act if he/she already informed the government about the fraud?
Under the False Claims Act, a person will not give up his/her right to file a suit for qui tam by going to the government before filing the qui tam lawsuit. Such a situation is usually common in Medicaid or Medicare claims.
Should I discuss my allegations with other people or the media?
No. Qui tam actions are filed under seal and no one can access the court file while it is "sealed"; you are not allowed to discuss your case with anyone other than your lawyer and the prosecutor until the case is unsealed, usually after the government completes its investigation.
Who can bring a qui tam action?
Because the federal False Claims Act was designed to encourage individuals to report fraud against the government, as long as the individual has firsthand knowledge of the fraudulent transactions with the government, he or she may proceed with the action. Firsthand knowledge means not only that the individual cannot have heard about the fraud elsewhere, it also requires more than just a suspicion (usually specific documentation is required). Typical plaintiffs include competitors of government contractors, subcontractors, and employees and former employees of a business who is cheating the government.
What claims are common in qui tam actions?
Common allegations include: billing the government for goods or services without providing the goods or services (such as Medicare fraud by providers); overcharging the government for goods or services (such as providing generic medication and billing for name brand); schemes to avoid paying taxes; double billing; providing unnecessary procedures and services; and test falsification. The offender must have knowledge of the fraudulent activity or act with deliberate indifference to the truth.
