Employment Law · Haute Lawyer Network
What Is a Qui Tam (False Claims Act) Case?
Last reviewed: October 2026 · Jurisdiction: United States (federal: False Claims Act, 31 U.S.C. 3729-3733)
A qui tam case is a lawsuit a private person (the "relator," often a whistleblower) files under the federal False Claims Act on behalf of the United States against someone who knowingly defrauded the government. If the case succeeds, the relator can receive a share of the recovery. Under 31 U.S.C. §3730, the complaint is filed under seal and served on the government, not the defendant. It stays sealed for at least 60 days while the Justice Department investigates and decides whether to intervene. A relator generally receives 15–25% of the proceeds if the government proceeds with the case, and 25–30% if the government declines and the relator litigates it. Courts can award less where the case rests mainly on public disclosures. The same statute protects employees from retaliation. This page is the FCA-specific companion to What Is Whistleblower Protection?. It is general information, not legal advice.
At a glance
| Question | Short answer (general; sources fetched 2026-10-16) |
|---|---|
| What law? | The federal False Claims Act (FCA), 31 U.S.C. §§3729–3733 |
| What conduct? | Knowingly presenting or causing a false or fraudulent claim for payment, using a false record material to a claim, conspiring to do so, or knowingly avoiding an obligation to pay the government (§3729(a)(1)) |
| Who can sue? | The Attorney General, or a private person "for the person and for the United States Government," in the government's name (§3730(a)–(b)) |
| How is it filed? | Under seal, with a written disclosure of substantially all material evidence served on the government; at least 60 days sealed, extendable for good cause (§3730(b)(2)–(3)) |
| Relator's share | 15–25% if the government proceeds; 25–30% if it declines; up to 10% if based primarily on public disclosures; plus reasonable expenses and attorneys' fees from the defendant (§3730(d)) |
| Defendant exposure | Civil penalty per claim ($14,308–$28,619 as adjusted for penalties assessed after July 3, 2025) plus 3× the government's damages (§3729(a)(1); 28 CFR 85.5) |
| Deadline to sue | Generally 6 years from the violation, or 3 years from when the responsible U.S. official knew or should have known, but never more than 10 years, whichever occurs last (§3731(b)) |
| Retaliation | Reinstatement, 2× back pay, interest, and special damages; sue within 3 years of the retaliation (§3730(h)) |
How a qui tam case works, step by step
- Counsel and evidence. The relator works with an FCA attorney to document the fraud. The statute requires serving the government with "written disclosure of substantially all material evidence and information" the relator has (§3730(b)(2)).
- Filing under seal. The complaint is filed *in camera* and stays under seal for at least 60 days. The defendant is not served until the court orders it (§3730(b)(2)). The government may ask for extensions for good cause (§3730(b)(3)).
- The government investigates and decides. Before the seal period ends, the government either proceeds with the action or declines, in which case the relator may go forward alone (§3730(b)(4)). Even after declining, the government can intervene later for good cause (§3730(c)(3)).
- Control of the case. If the government proceeds, it has primary responsibility for the case. It may settle over the relator's objection if the court finds the settlement fair, adequate, and reasonable after a hearing. It may also dismiss over the relator's objection after notice and a hearing opportunity (§3730(c)(1)–(2)).
- Dismissal needs consent. A qui tam action "may be dismissed only if the court and the Attorney General give written consent" (§3730(b)(1)).
- Recovery and the relator share. The share comes out of the proceeds. Expenses, attorneys' fees, and costs are awarded against the defendant (§3730(d)).
How the relator share is set
The FCA sets ranges, not a fixed percentage (31 U.S.C. §3730(d)):
| Situation | Statutory range |
|---|---|
| Government proceeds with the case | At least 15%, no more than 25%, depending on how much the relator substantially contributed |
| Case based primarily on publicly disclosed information (other than information the relator provided) | No more than 10% |
| Government declines; relator conducts the case | At least 25%, no more than 30% |
| Relator planned and initiated the fraud | Court may reduce the share; a relator convicted of criminal conduct arising from the violation is dismissed and gets no share |
DOJ's FY2025 announcement says relators typically receive between 15% and 30% of a successful recovery. No share is guaranteed. Recoveries depend on proof, damages, and settlement.
Rules that can end a case early
- First-to-file. Once a qui tam action is pending, "no person other than the Government may intervene or bring a related action based on the facts underlying the pending action" (§3730(b)(5)).
- Public-disclosure bar. Unless the government opposes, the court must dismiss if substantially the same allegations were already publicly disclosed in federal hearings, in government reports or audits, or by the news media. The exception is a relator who is an "original source" (§3730(e)(4)).
- Government already a party. A relator can't base a qui tam on allegations already the subject of a civil suit or administrative civil money penalty proceeding in which the government is a party (§3730(e)(3)).
- Statute of limitations. Six years from the violation, or three years from when the responsible U.S. official knew or should have known, capped at 10 years, whichever occurs last (§3731(b)).
- Frivolous cases. If the government declines, the relator litigates and loses, and the court finds the claim clearly frivolous, vexatious, or harassing, the defendant can recover its attorneys' fees (§3730(d)(4)).
Protection against retaliation (§3730(h))
An employee, contractor, or agent who is "discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against" because of lawful acts in furtherance of an FCA action, or other efforts to stop FCA violations, is entitled to relief that makes them whole. That relief includes reinstatement, two times back pay, interest, and special damages including litigation costs and reasonable attorneys' fees. A retaliation suit must be brought within 3 years of the retaliation. For broader workplace retaliation rules, see What Is Workplace Retaliation?.
How big is FCA enforcement?
The Justice Department announced on January 16, 2026 that FCA settlements and judgments exceeded $6.8 billion in fiscal year 2025 (ending Sept. 30, 2025), the highest single-year total in the Act's history. It also said whistleblowers filed 1,297 qui tam lawsuits, the most in a single year. DOJ's Civil Division describes the FCA as dating to 1863, enacted in response to defense-contractor fraud during the Civil War.
Constitutional challenge (status as of Oct. 16, 2026): on September 1, 2026, the U.S. Court of Appeals for the Eleventh Circuit held in *United States ex rel. Zafirov v. Florida Medical Associates* that relators are not "officers of the United States" and that the qui tam provisions do not violate the Appointments Clause. It vacated the district court's dismissal and sent the defendants' remaining Article II arguments back to the district court.
Qui tam vs. other whistleblower programs
A qui tam case is a lawsuit under the False Claims Act about fraud on government money (for example federal health-care programs or federal contracts). SEC, IRS, and other agency whistleblower programs have their own statutes, filing channels, and award rules. They are not FCA cases. See What Is Whistleblower Protection? for the broader overview. Many states have their own false claims statutes; ask counsel whether one applies.
Find an attorney
- Find a Lawyer
- Labor & Employment Law attorneys *(retaliation and employment-side questions)*
- White Collar Criminal Defense attorneys *(if you or your company face a federal fraud investigation)*
Haute Lawyer membership is a paid editorial program; inclusion is not a ranking or recommendation. Ask any attorney you consult whether they handle False Claims Act qui tam matters, and on which side.
Related Haute Lawyer pages
Sources
- 31 U.S.C. §3729 — False claims
- 31 U.S.C. §3730 — Civil actions for false claims
- 31 U.S.C. §3731 — False claims procedure
- 28 CFR §85.5 — Adjustments to civil monetary penalties
- U.S. Department of Justice, Office of Public Affairs — "False Claims Act Settlements and Judgments Exceed $6.8B in Fiscal Year 2025"
- U.S. Department of Justice, Civil Division — "The False Claims Act."
- United States ex rel. Zafirov v. Florida Medical Associates, LLC, No. 24-13581 (11th Cir. Sept. 1, 2026) (opinion PDF)
Frequently Asked Questions
What does "qui tam" mean?
It is shorthand for a Latin phrase describing a person who sues for the government as well as for themselves. Under the FCA, the private plaintiff is called the relator, and the case is brought in the government's name (31 U.S.C. §3730(b)(1)).
How much does a qui tam whistleblower get?
By statute: 15–25% of the proceeds if the government proceeds, 25–30% if it declines and the relator pursues the case, and no more than 10% if the case rests mainly on public disclosures. Shares can be reduced for a relator who planned the fraud (31 U.S.C. §3730(d)).
Is a qui tam complaint public?
Not at first. It is filed under seal for at least 60 days, which can be extended for good cause, and it isn't served on the defendant until the court orders it (§3730(b)(2)–(3)).
What if the government declines to intervene?
The relator may continue the case. The government can still ask for copies of filings and may intervene later for good cause (§3730(c)(3)).
How long do I have to file a False Claims Act case?
Generally 6 years from the violation, or 3 years after the responsible U.S. official knew or should have known the material facts, but never more than 10 years after the violation, whichever is later (§3731(b)). Talk to counsel early; the first-to-file rule can also bar later filers.
Can my employer fire me for reporting fraud on the government?
The FCA's anti-retaliation section protects employees, contractors, and agents. Relief includes reinstatement and two times back pay, and a retaliation suit must be filed within 3 years (§3730(h)).
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