How qui tam works

Qui tam is the procedure in the False Claims Act that lets a private person, called a relator, sue in the name of the United States. The Civil Division says the person may receive a portion of the government’s recovery. The steps below are the primer’s account of 31 U.S.C. § 3730, not a set of instructions for filing.

The sequence the primer describes

1. The relator files a civil complaint in the name of the government. The complaint is filed in camera and stays under seal for at least 60 days. It is not served on the defendant until the court orders service.
2. The relator serves the government with the complaint and a written disclosure of substantially all material evidence and information the person has.
3. The government may elect to intervene and take primary responsibility. It may ask the court to extend the seal.
4. If the government proceeds, the relator remains a party, subject to limits. The government may move to dismiss, after notice and a hearing opportunity, and may settle if the court finds the settlement fair, adequate, and reasonable.
5. If the government declines, the relator may conduct the case. The government can ask to intervene later for good cause.
6. If money is recovered, the relator’s share is paid from the proceeds. The ranges in the primer’s statutory text are 15 to 25 percent if the government proceeds, and 25 to 30 percent if it does not. A case based primarily on specified public disclosures can be capped at 10 percent when the government proceeds. A person who planned and initiated the violation can have the share reduced. A person convicted for that role is dismissed and receives nothing.
7. Reasonable expenses and attorneys’ fees are awarded against the defendant. The primer says the government is not liable for the relator’s expenses in bringing the case.

What the suit is about

The Civil Division says the Act reaches knowingly false claims, false records material to a false claim, conspiracies, and improper avoidance of an obligation to pay the government. Damages are three times the government’s damages plus a penalty linked to inflation. The current page does not state the inflation-adjusted penalty in dollars, so this site does not either.

The primer says the Act does not apply to tax claims under the Internal Revenue Code.

How this differs from the 2026 tip reward

The October 20, 2026 announcement describes a discretionary payment of $10,000 to $30,000 after criminal charges, for listed fraud subjects, with reports directed to America.gov/fraud. A qui tam is a lawsuit and a share of a civil recovery. The announcement says a person may remain eligible for other programs. It does not say both payments follow as a matter of course.

DOJ’s civil reporting page says many people hire counsel before a qui tam because of the procedures, including the seal. This site does not file the complaint and does not collect it.