Who is Eligible to File a Qui Tam Claim in California?

At Olivier & Schreiber P.C., we are dedicated to empowering individuals to take action against fraudulent activities that harm the government and, by extension, the public. One powerful legal mechanism available for such endeavors is the qui tam claim, particularly under the California False Claims Act (CFCA). But who exactly is eligible to file such claims in California? Let’s explore.

What is a Qui Tam Claim?

A qui tam lawsuit is initiated by a private individual, known as a relator, who exposes fraud committed against the government. This legal action allows whistleblowers to sue on behalf of the state or federal government and potentially share in the recovery.

The history of qui tam claims dates back to the Middle Ages, evolving significantly over time to encourage citizens to assist in uncovering fraud against the government. The concept was revitalized in the United States with the Federal False Claims Act during the Civil War, aimed at deterring rampant war profiteering. Similarly, California has established its own set of regulations under the CFCA to address fraudulent claims against state and local governments.

How Do Qui Tam Claims Work in California?

Under the California False Claims Act, individuals are empowered to file lawsuits on behalf of the government against entities that commit fraud. The CFCA is closely aligned with the Federal False Claims Act but specifically addresses fraudulent claims for state and local government funds.

The process begins when a whistleblower, or relator, files a qui tam lawsuit. The lawsuit is initially sealed, and the government is given an opportunity to investigate the allegations. If the government decides to intervene, the case is pursued jointly, with the potential for the whistleblower to receive between 15% to 33% of the recovered funds. If the government does not intervene, the whistleblower can proceed independently and may be entitled to a larger share, up to 50%.

Who is Eligible to File a Qui Tam Claim?

In California, a broad range of individuals and entities may qualify to file a qui tam suit. Typically, employees or contractors who have insider knowledge of fraudulent activities perpetrated by their employers or companies are the primary candidates. These individuals must possess specific and credible evidence of the fraud.

For example, a healthcare worker who uncovers fraudulent billing practices in a medical facility, such as charging for services not rendered, or an employee who exposes a scheme of kickbacks for government contracts may be eligible to file a qui tam lawsuit.

Limitations and Restrictions

While the CFCA is a robust tool for combating fraud, certain limitations exist. A qui tam suit must be filed within specific time frames: generally six years from when the fraud occurred or three years from when it was discovered, but not more than ten years from the occurrence. Additionally, if the information is already public or the whistleblower participated in the fraud, restrictions may apply.

Why Legal Guidance Is Necessary

Navigating the complexities of qui tam claims can be daunting, and having an experienced attorney on your side is essential. At Olivier & Schreiber P.C., our team has in-depth knowledge of California’s False Claims Act and extensive experience representing whistleblowers. We can guide you through the process, safeguard your rights, and ensure that you receive the maximum possible reward for exposing fraud against the government.

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Filing a qui tam claim in California is a significant step toward holding fraudulent entities accountable and recovering misappropriated taxpayer funds. If you believe you have witnessed fraud against the government, understanding your rights and eligibility is crucial. At Olivier & Schreiber P.C., we are here to guide potential whistleblowers through every step of the legal process, ensuring their contributions to justice are recognized and rewarded.