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.

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

Sealed Qui Tam Complaint Defense: Protecting Companies from Whistleblower Retaliation and Unfair Prosecution

When a whistleblower files a sealed qui tam complaint under the False Claims Act (FCA), companies can face significant legal challenges. This initial phase is critical, as it often determines whether an investigation will proceed and how aggressive subsequent actions might be. As a former federal prosecutor, I've seen firsthand how defense attorneys must meticulously examine the allegations to identify any weaknesses or mischaracterizations that could undermine the case. The FCA, codified in 31 U.S.C. § 3729-3733 and its qui tam provisions at 31 U.S.C. § 3730(b), allows private individuals to file complaints on behalf of the government against entities that have defrauded it. In practice, this means companies must be prepared for a rigorous defense strategy from day one. Defense attorneys often focus on two primary fronts: challenging the validity and specificity of the allegations in the sealed qui tam complaint itself, and preventing further legal action through settlement discussions with the Department of Justice (DOJ). The DOJ’s Civil Fraud Section plays a pivotal role in deciding whether to intervene in these cases. If the government declines intervention, companies have an opportunity to negotiate directly with the whistleblower or their counsel. Companies must also be aware that a sealed qui tam complaint is often accompanied by referrals to other federal agencies such as the HHS-OIG and DOD Inspector General for further investigation. This coordinated effort can escalate quickly into multi-agency investigations, making it imperative to have a strong defense team in place from the outset. Understanding these dynamics is crucial for crafting an effective response.

Challenge the Complaint

Identify any procedural or substantive defects in the sealed qui tam complaint that could invalidate the claims.

Engage with DOJ

Work closely with federal prosecutors to negotiate a favorable outcome or avoid intervention.

Coordinate Defense

Develop a comprehensive strategy that addresses investigations by multiple federal agencies.

Former Federal Prosecutor Insight

In my experience, the initial response to a sealed qui tam complaint is often the most critical phase of defense. Early communication with federal prosecutors can sometimes open up channels for resolution that might not be available later in the process.