How a Qui Tam Case Works

Legal Guides · Updated October 2026

A qui tam case lets a private whistleblower sue, on the government’s behalf, a company that defrauded a federal program, and share in the recovery. These cases follow a process unlike any other lawsuit: filed in secret, investigated by the government, and often years in the making. Here is how it works, step by step.

On this page: The basics · What must be proven · Step by step · If the government intervenes or declines · How long it takes · Risks and rules · FAQ

The Basics

The federal False Claims Act makes it illegal to knowingly submit, or cause someone to submit, a false claim for payment to the federal government, or to knowingly avoid paying money owed to it. Its qui tam provisions allow a private person, called the relator, to file the case. If it succeeds, the relator generally receives 15 to 30 percent of the recovery, and the defendant pays the relator’s attorney’s fees and costs. Common cases involve Medicare and Medicaid billing, government contracts, grants, loans and customs duties. See qui tam and False Claims Act cases.

What Must Be Proven

• A false or fraudulent claim, or a false record or statement used to get paid or to avoid paying the government.
• Knowledge. The defendant acted knowingly, which includes actual knowledge, deliberate ignorance or reckless disregard of the truth. The U.S. Supreme Court held in 2023 that what the defendant actually believed matters, not just whether its reading of a rule was objectively reasonable.
• Materiality. The falsity must matter to the government’s decision to pay. Minor or technical violations that the government would ignore generally are not enough.
• Damages to the government, which the law multiplies by three, plus a civil penalty for each false claim, currently more than $14,000 per claim and adjusted each year for inflation.

Step by Step

1. Confidential evaluation. A lawyer reviews what you know, how you learned it, whether the fraud has been publicly disclosed, and whether anyone else may already have filed.
2. The complaint and disclosure statement. Your lawyer prepares a detailed complaint and a written disclosure of the evidence for the government. The complaint must describe the fraud with specifics, not general suspicions.
3. Filing under seal. The complaint is filed in federal court under seal and served on the Department of Justice and the U.S. Attorney, not on the defendant. The defendant is not told about the case.
4. Government investigation. The seal lasts at least 60 days and is usually extended, often for a year or more. The government may interview the relator, issue subpoenas and review records. The relator typically meets with government attorneys and investigators.
5. Intervention decision. The government decides whether to intervene and take over the case, decline, or settle.
6. Unsealing and litigation. The complaint is unsealed and served on the defendant. The case proceeds like other federal litigation, or resolves.
7. Recovery and relator share. The relator’s share is paid from the government’s recovery after it collects.

If the Government Intervenes or Declines

• Intervention: the Department of Justice takes primary responsibility for the case. The relator remains a party, and generally receives 15 to 25 percent of the recovery.
• Declination: the relator may continue the case on the government’s behalf, and generally receives 25 to 30 percent if it succeeds. The government still monitors the case, must consent to any settlement, and can move to dismiss it.

Declination is not a finding that there was no fraud. The government declines cases for many reasons, including limited resources.

How Long It Takes

Most qui tam cases take years from filing to resolution. The sealed investigation alone often lasts a year or more, and litigated cases can take several more. Claims must generally be filed within six years of the violation, or within three years after the government knew or should have known the material facts, and no more than ten years after the violation.

Risks and Rules to Know

• First to file. Once a qui tam case is filed, others generally cannot bring a related case based on the same facts.
• Public disclosure. If the fraud was already disclosed publicly, for example in the news, a government report or a lawsuit, the case may be barred unless the relator is an original source of the information.
• Confidentiality. Violating the seal can hurt or end the case. Do not discuss it with anyone other than your lawyer and the government.
• Evidence. Do not take documents or access systems without legal advice.
• Retaliation. The False Claims Act prohibits retaliation and provides reinstatement, double back pay and other remedies. California law may add more. See what to do if you face retaliation.

Learn about other programs in whistleblower rewards, or see our federal whistleblower lawyer page.

Frequently Asked Questions

What does qui tam mean?

It comes from a Latin phrase meaning, roughly, one who sues on behalf of the king as well as himself. A qui tam relator sues on the government’s behalf and shares in the recovery.

Will the company know I filed?

Not while the case is under seal. The complaint is served on the government, not the defendant. If the case moves forward, it is unsealed, and the relator’s identity usually becomes known.

Do I need a lawyer to file a qui tam case?

Yes. Courts generally do not allow relators to pursue qui tam cases without a lawyer.

What if the government declines my case?

You may be able to continue the case yourself on the government’s behalf, with a higher relator share if it succeeds. Declination is not a finding that the claims lack merit.

How much does it cost?

Relators generally pay no attorney fee unless there is a recovery, and a successful defendant must pay the relator’s reasonable attorney’s fees and costs.

Related guides: Rewards for reporting fraud · Retaliated against for reporting fraud? · Proving whistleblower retaliation

This guide provides general information about California and federal law as of October 2026. It is not legal advice, and reading it does not create an attorney-client relationship. Every situation depends on its facts, so speak with a lawyer about yours.