Qui Tam & False Claims Act Cases

Qui tam lawsuits are a legal tool that allows whistleblowers to report fraud against government programs.

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In California, these cases are brought under the False Claims Act, which provides financial incentives and legal protections for individuals who expose fraud involving public funds.

What Is a Qui Tam Lawsuit?

A qui tam action is a type of whistleblower lawsuit filed by a private individual—known as a relator—on behalf of the government. The claim alleges that a person or company knowingly submitted false claims to a government agency for payment. If successful, the whistleblower may receive a portion of the recovered funds.

Case Results

$120,000

Wage Dispute

$300,000

Safety Violation / Retaliation

$400,000

Wrongful Termination

$350,000

Discrimination

$75,000

Break Violations

$500,000

Harassment / Hostile Work Environment

Laws That Apply

Federal False Claims Act
(31 U.S.C. §§ 3729–3733):

Covers fraud against federal programs like Medicare, Medicaid, or defense contracts.

California False Claims Act
(Gov. Code §§ 12650–12656):

Covers fraud involving California state or local government funds, including Medi-Cal and state-funded contracts.

Both laws allow private individuals to sue on the government’s behalf and share in any financial recovery.

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Examples of False Claims

Billing for services not actually provided
Overcharging or double-billing government programs
Using false information to obtain government contracts or grants
Providing substandard or non-compliant products or services under government contracts
Falsifying eligibility data to receive payments

These cases are common in healthcare, defense contracting, education funding, and public works projects.

Whistleblower Protections

Both federal and state laws prohibit retaliation against individuals who file or assist in qui tam actions. Retaliation may include termination, demotion, harassment, or threats. If retaliation occurs, the whistleblower may be entitled to:

Reinstatement
Back pay with interest
Compensation for emotional distress
Attorney’s fees

Filing a Qui Tam Action

Qui tam lawsuits are filed under seal in federal or state court, meaning they are not initially made public. The government then investigates the claims and decides whether to intervene. If the government takes over the case, it leads the prosecution; if not, the whistleblower can continue independently.

The whistleblower may receive:

15–25% of the recovery if the government intervenes

25–30% if they pursue the case on their own and succeed

Strict filing procedures and timelines apply, so early legal guidance is critical.

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