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Government Involvement in Qui Tam Lawsuits
Government Action
A. Government Intervenes
If the United States elects to intervene and assume primary responsibility for the litigation of the Qui Tam lawsuit, the relator remains a party to the action.
However, the United States may restrict the relator’s role upon a showing of undue delay, repetition, etc.. For example, a relator may perform certain functions during the trial, such as calling and cross-examining witnesses, but the United States may limit the scope or length of that cross-examination to prevent undue delay. Further, if the United States intervenes, it may dismiss or settle the lawsuit over the relator’s objection.
Should the United States move to dismiss or settle the action, the relator must be notified of the intended action and provided an opportunity to be heard on the matter. If the court determines the settlement to be “fair, adequate, and reasonable under all the circumstances,” it will allow the settlement despite the objections of the relator.
Where the United States elects to intervene in the action, the relator is nevertheless entitled to a share of any monies recovered from the defendant. Specifically, when the Government intervenes in a “qui tam” action, the relator is typically entitled to between 15% and 25% of the proceeds recovered in the action, as well as reasonable expenses and attorney’s fees.
B. Government Declines to Intervene
Following its investigation, the United States may decline to intervene in place of the relator. In such cases, the relator has the right to conduct the action and has primary responsibility for the litigation.
Nonetheless, the United States maintains a significant amount of leverage to influence the lawsuit. For example, although not a party to the action, the United States may require both parties, upon request, to provide copies of all pleadings filed in the action, as well as copies of all deposition transcripts.
Additionally, the court may, “without limiting the status and rights of the person initiating the action,” allow the United States to intervene in a “qui tam” action after initially declining to do so, upon a showing of “good cause.”
Finally, some courts have permitted the United States to veto the proposed settlement of a “qui tam” action, even though it has previously declined to intervene in the case and makes no attempt to do so at a later date.
Regardless, in those cases where the Government declines to intervene, the relator’s recovery amounts increase, as he or she bears the burden of financing the lawsuit.
Specifically, when the relator pursues the action without United States intervention, the relator is entitled to receive an amount between 25% and 30% of the proceeds recovered in the action, as well as reasonable expenses and attorney’s fees.
source: Federal Law Enforcement Training Center
see also:
Whistleblower Law
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Protection Against Retaliation
Qui Tam Lawsuit - Protection Against RetaliationProtection Against Retaliation in a Qui Tam Lawsuit
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