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The "qui tam" case, which was brought under the False Claims Act by a California biochemist, launched a large-scale federal investigation and resulted in the record-setting resolution. The whistleblower was awarded $45 million of the $262 million civil settlement under the False Claims Act. [40]
The first qui tam case under the amended False Claims Act was filed in 1987 by an eye surgeon against an eye clinic and one of its doctors, alleging unnecessary surgeries and other procedures were being performed. [18] The case settled in 1988 for a total of $605,000. However, the law was primarily used in the beginning against defense contractors.
A few words about the history of the whistleblower provisions. The qui tam rules are part of the False Claims Act, a Civil War-era law that was enacted in response to reports of wholesale ...
The False Claims Act is unique because, while the federal government is always the "real party in interest" (as the one allegedly being defrauded), the statute allows a private plaintiff (known as a "relator" under the FCA) to sue qui tam (on the government's behalf) since the relator is "partially assigned" part of the government's legal injury.
She filed under the qui tam provisions of the FCA, which authorizes private parties to sue on behalf of the U.S. for false claims and share in any recovery, the Justice Department said.
The manner in which this is done varies, and persons engaging in fraud are always seeking new ways to circumvent the law. Damages from fraud can be recovered by use of the False Claims Act, most commonly under the qui tam provisions which rewards an individual for being a "whistleblower", or relator (law). [1]
Qui Tam, a legal concept that pre-dates the founding of the country, allows whistleblowers to file claims that hold accountable those who defraud the government.
The False Claims Act provides civil remedies for non-government workers. Qui tam is a provision under the False Claims Act that allows private individuals to sue on behalf of the government. Separate remedies are available for government workers. This False Claims Act helps to make sure claims are truthful, accurate, valid, and fair.