Qui Tam cases are a type of a legal action that allows for individual citizens to “blow the whistle” on companies’ bad behavior. A Qui Tam case allows a person or entity to file a claim on behalf of the government against those who may have filed a false or fraudulent claim to the government for financial gain.
Many types of qui tam cases may arise, but the common theme is that they are all types of fraud, with the government as the defrauded party. Here are some of the most common types:
- Healthcare fraud: Healthcare provider (e.g., hospital) files a false claim to Medicare or Medicaid or engages in fraudulent medical billing practices.
- Defense contractor fraud: Defense contractors hired to work on various projects, ail to provide quality goods/services, overcharge the government for the goods/services provided, or otherwise commit fraud.
- Procurement fraud: Companies commit fraud (e.g., engaging in bid rigging) to make sure they secure a government contract.
- Financial fraud: Individuals or companies engage in tax evasion or fraud (e.g., securities fraud).
- Environmental fraud: Individuals or companies using governmental funds take actions (e.g., engaging in pollution) that cause harm to the environment.
Qui Tam cases are important to make sure that those in New York and other states who are involved in fraudulent activities that harm the government are held accountable for their actions. Those who are liable for defrauding the government may be required to pay back lost taxpayer funds, as well as additional damages. Filing Qui Tam cases can also help prevent future fraudulent activity.