A qui tam lawsuit lets a private person, called a relator, sue on the federal government’s behalf over fraud against a government program. The case is filed under seal, the government investigates, and if money is recovered, the whistleblower generally receives 15% to 30% of it. Texas has a parallel law for Medicaid fraud.
What kinds of fraud qualify?
The federal False Claims Act covers knowingly submitting, or causing, false claims for government money. Common examples:
- Billing Medicare or Medicaid for services not provided, or upcoded to higher-paying codes
- Kickbacks for patient referrals
- Defense or government contractors overbilling, or delivering substandard products
- Lying to obtain government grants or loans
- Customs and tariff evasion
In Texas, the Texas Medicaid Fraud Prevention Act allows similar suits over fraud on the state Medicaid program.
How does the process work?
- Confidential evaluation. We review your evidence and whether your information is original. Information already publicly disclosed can bar the case, and only the first relator to file usually recovers.
- Disclosure and filing under seal. The complaint is filed in federal court under seal, and a written disclosure of the evidence goes to the government. The defendant isn’t told.
- Government investigation. The seal lasts 60 days by law, but extensions are routine. Investigations often take a year or more.
- Intervention decision. The government either joins the case or declines. If it declines, the relator may pursue the case alone.
- Resolution. Most cases end in settlement. The relator’s share is set by statute.
How much can a whistleblower receive?
| Situation | Relator’s share of recovery |
|---|---|
| Government intervenes | 15%–25% |
| Relator proceeds without the government | 25%–30% |
Defendants who lose face triple damages plus a civil penalty for each false claim, so recoveries can be large. The relator’s reasonable attorney’s fees are paid by the defendant.
Am I protected from retaliation?
Yes. The False Claims Act protects employees, contractors and agents who are fired, demoted, harassed or otherwise punished for efforts to stop fraud. Remedies include reinstatement, double back pay with interest, and special damages. Retaliation claims have their own, shorter deadline.
What should I do before contacting a lawyer?
- Don’t confront your employer or tell coworkers.
- Don’t take documents you aren’t authorized to access, or patient records beyond what’s necessary. Your lawyer can advise on what is safe to keep.
- Write down what you know: dates, people involved, how the scheme works.
- Act promptly. The first-to-file rule and statute of limitations reward speed.
From our case files
- Qui tam settlement. We settled a False Claims Act case for fraud on the federal government for a major but confidential sum (2023).
- Government contractor fraud. We filed a multimillion-dollar qui tam lawsuit against government contractors, which settled for a confidential sum (2018).
- SEC whistleblower complaint. We drafted and filed a securities whistleblower complaint against a Texas-based national investment funds company and arranged our clients’ interviews with the SEC (2020).
Client names are withheld for confidentiality. Every case turns on its own facts, and past results do not guarantee a similar outcome. See more representative results.
The Burk Law Firm represents whistleblowers in False Claims Act and Texas Medicaid fraud cases. Consultations are confidential. Call (512) 306-9828.
Related: How Do You Prove Business Fraud in Texas? · Whistleblower & Qui Tam Lawsuits · Healthcare Fraud Lawsuits · Can You Recover Investment Losses Caused by Your Broker?
This article is general information, not legal advice. Reading it does not create an attorney-client relationship.