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 Idaho, as in other states, individuals can bring qui tam actions under the federal False Claims Act when they have evidence of someone defrauding the federal government. These individuals, known as relators, file lawsuits on behalf of the government and can potentially receive a portion of the recovered funds if the action is successful. While the federal law is applicable nationwide, including in Idaho, the state also has its own False Claims Act, which allows for similar actions at the state level. The Idaho False Claims Act enables private parties to sue on behalf of the state government for fraudulent claims made to state-funded programs. If the state or federal government intervenes and recovers funds, the whistleblower may receive a share of the recovery. These laws are designed to encourage the reporting of fraud and protect the government from financial losses due to false claims.