qui tam action


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qui tam action

(kwee tam) n. Latin for who as well, a lawsuit brought by a private citizen (popularly called a "whistle blower") against a person or company who is believed to have violated the law in the performance of a contract with the government or in violation of a government regulation, when there is a statute which provides for a penalty for such violations. Qui tam suits are brought for "the government as well as the plaintiff." In a qui tam action the plaintiff (the person bringing the suit) will be entitled to a percentage of the recovery of the penalty (which may include large amounts for breach of contract) as a reward for exposing the wrong-doing and recovering funds for the government. Sometimes the federal or state government will intervene and become a party to the suit in order to guarantee success and be part of any negotiations and conduct of the case. This type of action is generally based on significant violations which involve fraudulent or criminal acts, and not technical violations and/or errors.

qui tam action

an action by an informer that in the event of success results in the state and the informer sharing the penalty.
References in periodicals archive ?
In contrast, a common-law qui tam action appears generally to have involved an "aggrieved party" for whom qui tam was a procedural device for gaining access to England's royal courts on grounds that the case involved a royal interest as well as a private interest.
Ordinarily, in order to intervene for purpose of pursuing the litigation in a qui tam action after the sixty-day seal period expires, (457) the government needs to first make a showing of good cause.
Deference to history to validate constitutional status is proper, the majority wrote, when, unlike the case of qui tam actions, the practice "was extensively debated by the adopting Congress and had become part of the fabric of our society.
16) This practice of sharing enforcement power continued through the years in England by allowing private parties to bring qui tam actions.
The long history of qui tam actions strongly supports a finding of their constitutionality," the judge wrote.
Given the current regulatory enforcement environment and the added possibility of a qui tam action, poor regulatory compliance can result in potential liability costing hundreds of millions of dollars.
The subsistence of qui tam actions alone might be enough to refute any such suggestion.
2) Depending on what circuit court the hapless relator finds herself in she is just as likely to end up with a mouthful of scalding porridge as she is of maintaining her qui tam action under the False Claims Act (FCA).
2] Numerous articles have discussed the specific requirements and parameters of a qui tam action.
The amendments also included a jurisdictional bar to a qui tam action "whenever it shall be made to appear that such suit was based upon evidence or information in the possession" of the U.
Because every qui tam action requires review and potential investigation by the federal government, every whistleblower's suit is a risk to a health care provider.
A remedy brought to the American legal system from English common law, qui tam provisions authorize private individuals, who in an FCA qui tam action are called relators, to sue on the sovereign's or government's behalf and retain a portion of any judgment obtained, with the remainder going to the government.