The False Claims Act (FCA) allows a private citizen whistleblower, known as a “relator,” to file a lawsuit against an individual or entity for defrauding the federal government. In a 2021 speech at the Federal Bar Association Qui Tam Conference, Acting Assistant Attorney General Brian M. Boynton emphasized that relators are “an essential source of new leads” and the Justice Department relies on whistleblowers to “help root out the misuse and abuse of taxpayer funds.” FCA litigation is extremely lucrative for both the government and FCA relators. In fiscal year 2021, the Justice Department recovered more than $5.6 billion in cases involving fraud and false claims against the government, nearly $1.6 billion of which arose from cases initiated by whistleblowers. Whistleblowers filed 598 qui tam suits in fiscal year 2021, and the government paid out $237 million to whistleblowers.
In qui tam actions the relator sits in the seat of the government at first and then the government investigates the relator’s claims and elects whether to participate in the action. If the government intervenes, the government conducts the litigation, but the relator remains entitled to a percentage of the recovery. If the government does not intervene, the case can proceed with only the relator pursuing the action and the relator is entitled to a greater percentage of any recovery. The government remains the real party in interest, even when the litigation is pursued solely by the relator and may...
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