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 New Jersey, similar to the federal False Claims Act, there is a state-level statute that allows for qui tam actions. This is known as the New Jersey False Claims Act (NJFCA), which permits private individuals, known as relators, to file lawsuits on behalf of the state government against entities or individuals who have submitted false claims to state programs. The NJFCA is designed to combat fraud against state funds and programs, including healthcare fraud involving Medicaid. If the action is successful, the relator may be entitled to a portion of the recovered funds, which can range from 15% to 30% depending on the case's circumstances and the extent to which the relator contributed to the prosecution of the action. The New Jersey Attorney General's Office plays a role in investigating qui tam claims under the NJFCA, and it has the authority to intervene in and take over the prosecution of such actions. Whistleblowers are protected under the NJFCA, and it includes provisions to safeguard them from retaliation by their employers.