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 Kentucky, similar to the federal False Claims Act, there is a state-level statute that allows for qui tam actions, where a private party, known as a relator, can bring a lawsuit on behalf of the state government against individuals or entities that have defrauded the state. This is particularly relevant in cases involving Medicaid fraud, as Kentucky receives federal and state funds to provide healthcare services. The Kentucky Model Procurement Code, KRS Chapter 45A, includes provisions that address false claims and protect whistleblowers. Under these provisions, if the relator's lawsuit is successful, they may be entitled to a portion of the recovered funds as a reward for their role in exposing the fraud. The specific percentage of the reward can vary, but it is generally designed to incentivize whistleblowers to report fraudulent activities against the state government. The Kentucky Attorney General's office plays a key role in investigating and prosecuting these qui tam actions.