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.

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

Protecting Defendants in Qui Tam Actions: Expert Defense Strategies

As a former federal prosecutor, I've seen firsthand how qui tam actions under the False Claims Act can lead to significant legal challenges for defendants. The statute, found in 31 U.S.C. § 3729-3733, allows whistleblowers to file lawsuits on behalf of the government against entities they believe are defrauding it, and these cases often involve complex issues such as materiality, scienter, and public disclosure bars. A qui tam defense attorney must be adept at navigating the intricate web of procedural rules set forth in 31 U.S.C. § 3730, which governs both relator and government actions. Many defendants face allegations under multiple statutes simultaneously, including violations of 18 U.S.C. § 287 (false claims to a government entity) and 18 U.S.C. § 1001 (false statements). These cases are often initiated by whistleblowers within the healthcare, defense contracting, or financial sectors, prompting investigations from agencies like the DOJ Civil Fraud Section, HHS-OIG, DOD Inspector General, and GSA Office of Inspector General. Given the potential for substantial penalties, including treble damages and civil penalties per false claim, it's crucial to engage a qui tam defense attorney who understands both the procedural intricacies and the substantive legal issues involved. I've seen cases where defendants are improperly accused of knowing or reckless conduct when they may have simply made an honest mistake in complying with complex regulations.

Materiality Defense

Asserting that the false claims are immaterial is a powerful defense. The Supreme Court's ruling in Escobar has clarified materiality standards, emphasizing the importance of showing no practical impact on government spending.

Relator Credibility

Evaluating and challenging the credibility of the relator is critical. Whistleblowers may have ulterior motives or incomplete information, which can be exploited in defense strategies.

Government Dismissal Requests

Responding to a government's motion to dismiss can turn the tide of a qui tam case. Effective arguments based on procedural or substantive grounds are necessary.

Former Federal Prosecutor Insight

In my experience, prosecutors often rely heavily on the credibility of whistleblowers and their claims in qui tam actions. However, this reliance can be exploited through a thorough investigation into both the whistleblower's motives and the factual basis for their allegations.