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 Nevada, qui tam actions are a legal mechanism where a private party, known as a relator, can file a lawsuit on behalf of the government against individuals or entities suspected of defrauding government programs. This is similar to the federal False Claims Act, which allows private citizens to sue on behalf of the federal government and share in any monetary recovery. Nevada has its own version of the False Claims Act, which permits whistleblowers to bring actions when false claims are made to state government programs. Under Nevada Revised Statutes (NRS) Chapter 357, the state's False Claims Act, a successful relator may be entitled to a portion of the recovered funds. These actions are particularly prevalent in areas involving defense contracting and healthcare services, such as Medicaid. The specific percentage of the recovery that a relator may receive varies, but it can be up to 30% under certain conditions. Qui tam actions in Nevada are an important tool for combating fraud against the state government and incentivize whistleblowers to report wrongdoing.