How Qui Tam Lawsuits Work: Step-by-Step

If you’ve uncovered fraud against the federal government — whether it involves overbilling Medicare, falsifying research data, or padding defense contracts — you may be able to bring a lawsuit under the False Claims Act (FCA). These lawsuits, called qui tam actions, allow private citizens (whistleblowers) to sue on behalf of the U.S. government and potentially earn a share of the recovery.

Filing a qui tam case is not as simple as going to court. It’s a unique legal process with critical steps and strategic choices. Here’s how it works — and how the right legal guidance can make all the difference. We’re thankful to have had guidance from the Law Offices of Darth M. Newman in writing this piece.

  1. Step 1: Speak to an Experienced FCA Attorney

Before anything else, you should speak to a law firm experienced in FCA whistleblower representation. Why? Because:

  • FCA cases involve complex legal standards
  • There are strict procedural requirements
  • Your rights and potential reward depend on doing things correctly from the start

Your attorney will evaluate whether your evidence is strong enough to support a qui tam case and whether it fits within the legal definition of fraud under the FCA.

  1. Step 2: Gather and Preserve Evidence — Legally

As a potential relator (the legal term for an FCA whistleblower), you likely have insider knowledge of fraudulent conduct. But documentation is key.

With your attorney’s guidance, you can gather legally permissible documents — such as emails, billing records, internal reports, or contracts — to support your claim. It’s critical not to violate any laws while doing this, such as accessing restricted files or taking proprietary data that is unrelated to the fraud.

  1. Step 3: Draft and File the Complaint Under Seal

Your attorney will help draft a detailed legal complaint, laying out:

  • The fraudulent conduct
  • How it violates the False Claims Act
  • The evidence to support your allegations

The complaint is filed under seal, meaning it is kept secret from the defendant for at least 60 days (often much longer). This gives the Department of Justice (DOJ) time to investigate the claims.

During this period:

  • You cannot discuss the case with anyone except your attorney and government investigators
  • The defendant will not yet know about the lawsuit
  • The court will not publish the filing publicly
  1. Step 4: DOJ Investigation and Intervention Decision

Once the case is filed under seal, the Department of Justice — often working with agencies like HHS, DOD, or CMS — conducts an in-depth investigation. They may:

  • Interview you (the relator)
  • Review documents
  • Subpoena the defendant
  • Consult with experts

After this investigation, the DOJ decides whether to intervene (take over the case). This is a major milestone.

  • If the DOJ intervenes, it becomes the lead party and often pushes toward settlement or litigation.
  • If the DOJ declines, you and your legal team can still proceed on behalf of the government — and you may receive a higher percentage of any recovery.
  1. Step 5: Resolution — Settlement or Trial

Once the case moves forward (either with or without DOJ), it may end in:

  • Settlement: Most FCA cases resolve this way. The defendant agrees to pay a negotiated amount without admitting wrongdoing.
  • Trial: Rare, but possible. If the case goes to trial and you win, the court can award treble damages (three times the government’s losses) and civil penalties for each false claim submitted.

Either way, if the government recovers money, you as the whistleblower receive a reward, typically:

  • 15–25% of the recovery if DOJ intervenes
  • 25–30% if DOJ declines and you proceed independently
  1. Step 6: Whistleblower Protections

Throughout the process, you are protected by the FCA’s anti-retaliation provisions. If your employer demotes, harasses, or fires you because of your whistleblowing, you can sue for:

  • Reinstatement
  • Double back pay
  • Special damages (including legal fees)

It’s vital to document any retaliatory actions and share them with your legal counsel.

Bringing a qui tam case is a serious legal undertaking — but also a powerful way to stop fraud and potentially earn a substantial financial reward. Whistleblowers are often the only ones with access to the truth, and without their courage, many fraud schemes would never come to light.

If you suspect fraud against the government, don’t wait. Talk to a knowledgeable false claims act lawyer to understand your options and protect your rights. At our firm, we offer confidential consultations and have years of experience guiding whistleblowers through the complex, high-stakes world of False Claims Act litigation.

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