Qui Tam is from a Latin phrase meaning ?he who brings a case on behalf of our lord the King, as well as for himself?.
Today, Qui Tam commonly means when a lawsuit is brought by a private citizen under a federal or state False Claims Act against another person or company. The lawsuit will alleged that the person or company who is sued is believed to have violated the law in the performance of a contract with the Federal Government or State, or there has been the submission or false or fraudulent claims for payment from the Federal Government or State. The person or company who is being sued has the right to defend against any Qui Tam action.
In a qui tam action the person bringing the lawsuit on behalf of the government will be entitled to a percentage of the recovery of the penalty as a reward for exposing the wrongdoing and recovering funds for the government. Many times qui tam claims are brought by employees of companies who have contracts with the federal government or state. Sometimes the federal or state government will intervene in the lawsuit and become a party and be part of any negotiations or prosecution of the case.
Qui Tam cases are complex and fact intensive. If you have any questions regarding Qui Tam claims or have information relating to the same that may affect you or your business it is recommended you seek the advice of an attorney.
Leonard Schneider is a partner in Liles Parker PLLC in the Houston, Texas office. The firm focuses on health care audits, business contracts, general corporate and business litigation matters and municipal law. He can be contacted at firstname.lastname@example.org or at the firm website www.lilesparker.com. The Houston office number is 713-432-7474