What is a qui tam lawsuit under the False Claims Act and what benefit does a whistleblower (relator) receive?
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Explanation
The False Claims Act (31 U.S.C. Section 3729) allows private citizens called 'relators' to file qui tam lawsuits on behalf of the government against contractors, healthcare providers, and others who defraud the federal government. The lawsuit is initially filed under seal while the Department of Justice investigates and decides whether to intervene. If the government intervenes and the case succeeds, the relator receives 15% to 25% of the recovery; if the government declines and the relator pursues it alone, the share rises to 25% to 30%. The law also includes strong anti-retaliation protections. The DOJ has recovered over $75 billion since 1986 through the False Claims Act, with a significant portion coming from qui tam actions.