In a qui tam (pronounced Kee-tam) action a private party (person or entity) brings an action by filing a lawsuit or claim on behalf of the government. The private party is called the relator and the government is the real plaintiff.

For example, under the federal False Claims Act a private party may bring a qui tam action against a party who has defrauded the federal government by submitting false claims for goods or services. See 31 U.S.C. §3279. If the lawsuit or claim is successful, the relator may receive up to 30% of the government’s recovery.

Because the relator is bringing the fraud to the attention of the federal government they are sometimes referred to as whistleblowers and the lawsuit or claim may be referred to as a whistleblower action.

Qui tam actions may originate in most any of the federal government’s departments, but two of the most common are the military (defense contractors selling goods and services to the U.S. government) and health care (Medicare and Medicaid services sold to the U.S. government). The Fraud Section of the United States Department of Justice generally investigates qui tam claims.

Most states also have a law known as the False Claims Act that that provides for qui tam or whistleblower actions brought on behalf of the state government. These laws vary from state to state and are usually located in a state’s statutes.

In Arkansas, as in many other states, individuals can bring qui tam actions under both federal and state laws. Under the federal False Claims Act (31 U.S.C. § 3729), a private party, known as a relator, can file a lawsuit on behalf of the U.S. government against entities that are suspected of defrauding the government. If the action is successful, the relator may receive a portion of the recovered funds, typically up to 30%. These actions are often related to fraud involving military contracts or healthcare services like Medicare and Medicaid. The Fraud Section of the U.S. Department of Justice is responsible for investigating these claims. Arkansas has its own version of the False Claims Act, which allows for similar qui tam actions at the state level. These state statutes enable private parties to sue on behalf of the state government for fraud against state funds. The specifics of the Arkansas False Claims Act can be found in the state's statutes, and it is designed to work in tandem with the federal law to deter and penalize fraudulent activities against the government.