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 California, qui tam actions are governed by both federal and state laws. Under the federal False Claims Act (31 U.S.C. § 3729), private parties, known as relators, can file lawsuits on behalf of the U.S. government against individuals or entities that have submitted fraudulent claims to the government. If the action is successful, the relator may receive a portion of the recovered funds, typically up to 30%. California has its own False Claims Act (California Government Code sections 12650-12656), which mirrors the federal law and allows for qui tam actions to be brought on behalf of the state government. These actions can be related to various sectors, with defense contracting and healthcare being among the most common. The California Attorney General's office plays a role similar to the U.S. Department of Justice's Fraud Section in investigating state-level qui tam claims. Whistleblowers in California are also protected under state law, which encourages individuals to report fraud without fear of retaliation.