What is a qui tam lawsuit?

A qui tam lawsuit is a specific type of legal action that allows an individual, often referred to as a "whistleblower," to file a claim on behalf of the government. This legal mechanism is particularly important in cases of fraud against government programs, such as Medicare or Medicaid, where the whistleblower may report misconduct or illegal practices within healthcare settings. The individual who brings the claim is entitled to a portion of any recovery awarded to the government, serving as an incentive for citizens to come forward with information about wrongdoing.

This concept is rooted in the False Claims Act, which encourages private citizens to report fraud and seeks to protect taxpayer funds. In this way, qui tam suits are a vital tool in combating fraud and ensuring compliance within the healthcare industry and other sectors that involve government funding. The unique nature of qui tam lawsuits, where individuals can act on behalf of the government, distinguishes them from other types of legal claims involving direct disputes between parties.