What is the False Claims Act and how does it relate to Qui Tam?

The False Claims Act (FCA) is a federal law that imposes penalties for submitting false claims to the government. Qui Tam provisions allow private individuals, known as relators, to sue on behalf of the government those who defraud it, potentially earning a portion of any recovery.

Can I be held liable if someone else files a qui tam lawsuit against my company?

If you are an individual accused in a qui tam action, liability depends on your role and involvement in the alleged fraudulent activities. Defendants can face severe penalties including fines and imprisonment if found guilty under the FCA.

What defenses are available to someone facing Qui Tam charges?

Defenses include proving that no false claim was made, demonstrating lack of intent or knowledge regarding the alleged fraud, or showing compliance with applicable laws and regulations at all times relevant.

False Claims Act Lawsuit Defense — Qui Tam & False Claims Act Defense Attorney

Navigating the Challenges of a False Claims Act Lawsuit Defense

Defending against a False Claims Act lawsuit requires a thorough understanding of both the intricacies of the statute and the procedural nuances involved. Under 31 USC § 3729-3733, qui tam relators can file claims on behalf of the government to recover damages from individuals or companies who defraud federal programs. As a former prosecutor with extensive experience in this area, I've seen firsthand how these cases unfold and what strategies are most effective for defendants facing such charges. One critical aspect of False Claims Act litigation is the broad reach of qui tam provisions under 31 USC § 3730. These allow private citizens to bring civil actions against parties suspected of fraud on behalf of the government, which can lead to significant financial penalties and even criminal liability under statutes like 18 USC § 287 (false claims to government) and 18 USC § 1001 (false statements). As a defense attorney, your role is not only to challenge the evidence presented but also to navigate complex procedural requirements that can impact the outcome of the case. The Department of Justice plays a pivotal role in False Claims Act litigation. Often, the decision by DOJ to intervene in a qui tam action significantly influences its trajectory and outcome. If the government declines intervention, defendants may face more aggressive tactics from relators who are often incentivized by potential recoveries under qui tam provisions. In such scenarios, building a strong defense that addresses both legal and factual aspects of the case is crucial.

Identify Key Defenses

Challenging the sufficiency of evidence and proving lack of intent to defraud are critical strategies.

Negotiate Early Settlements

Proactively engaging with the government can lead to more favorable terms.

Leverage Government Declination

When the DOJ declines intervention, focus on undermining relator's credibility and evidence.

Former Federal Prosecutor Insight

In my experience prosecuting False Claims Act cases, I've found that early engagement with the DOJ can be pivotal in shaping the case's trajectory. By addressing potential weaknesses and negotiating terms upfront, defendants can often secure more favorable outcomes compared to waiting for a full investigation.