In a qui tam (pronounced Kee-tam) action a private party (person or entity) brings an action by filing a lawsuit or claim on behalf of the government. The private party is called the relator and the government is the real plaintiff.
For example, under the federal False Claims Act a private party may bring a qui tam action against a party who has defrauded the federal government by submitting false claims for goods or services. See 31 U.S.C. §3279. If the lawsuit or claim is successful, the relator may receive up to 30% of the government’s recovery.
Because the relator is bringing the fraud to the attention of the federal government they are sometimes referred to as whistleblowers and the lawsuit or claim may be referred to as a whistleblower action.
Qui tam actions may originate in most any of the federal government’s departments, but two of the most common are the military (defense contractors selling goods and services to the U.S. government) and health care (Medicare and Medicaid services sold to the U.S. government). The Fraud Section of the United States Department of Justice generally investigates qui tam claims.
Most states also have a law known as the False Claims Act that that provides for qui tam or whistleblower actions brought on behalf of the state government. These laws vary from state to state and are usually located in a state’s statutes.
In West Virginia, as in many other states, individuals can bring qui tam actions under the federal False Claims Act when they uncover fraud against the federal government. These individuals, known as relators, file lawsuits on behalf of the government and can potentially receive a portion of the recovered funds, which may be up to 30% of the government's recovery. This type of lawsuit is also commonly referred to as a whistleblower action. While the federal False Claims Act is applicable nationwide, West Virginia may have its own state-specific False Claims Act that allows for similar actions at the state level. These state acts enable private parties to sue on behalf of the state government for fraud. The specifics of West Virginia's state provisions would be found in the state's statutes, and they may differ in details from the federal law. It's important for relators to consult with an attorney to understand the nuances of both federal and state laws regarding qui tam actions.