What is a Qui tam action?

A Qui tam action is a legal provision that allows a whistleblower to bring a lawsuit on behalf of the government against individuals or entities suspected of committing fraud against government programs or contracts. This type of action is derived from the Latin phrase meaning "he who brings a case on behalf of our Lord the King, as well as for himself." In essence, it empowers individuals with inside knowledge of wrongdoing, usually within organizations that defraud government programs, to report their findings and seek remedies to recover funds lost due to such fraudulent activities.

Whistleblowers can potentially receive a portion of the recovered funds as a reward for their role in exposing the fraud. This not only incentivizes individuals to come forward but also plays a crucial role in promoting accountability and compliance within organizations that operate under government contracts. The broader implications of Qui tam actions also enhance enforcement of laws and encourage a culture of transparency and ethics in both the public and private sectors.