How to File a Qui Tam Lawsuit
Filing a qui tam lawsuit is nothing like filing an ordinary complaint. A False Claims Act case is filed in secret, served on the government rather than the defendant, and cannot move forward until the Department of Justice has had time to investigate. Getting that sequence right matters, because a single misstep can bar an otherwise strong case. The steps below explain how a qui tam case actually gets started and what a whistleblower can expect along the way.
These are general steps, not legal advice for any particular situation. I am Stephen Teller, and I guide whistleblowers through this process nationwide from Seattle. Individuals with questions are encouraged to call me at (206) 324-8969 for a free, confidential consultation.
What Should a Whistleblower Do Before Filing?
The most important early steps happen before anything is filed. A prospective relator should write down what they know in detail and preserve evidence that they can access lawfully, such as invoices, billing records, emails, or contracts obtained through ordinary job duties. Taking privileged, classified, or unlawfully accessed material can seriously damage a case, so part of my role is helping clients gather and preserve evidence lawfully before a complaint is prepared.
It is equally important not to confront the wrongdoer, tip off the employer, or discuss the fraud publicly, because a public disclosure can weaken or bar a claim. Since only the first person to file on a set of facts can normally recover, consulting a qui tam lawyer early is often the difference between a viable case and a lost one.
How Is a Qui Tam Complaint Filed Under Seal?
A qui tam relator must file a complaint in federal district court, and that complaint is filed under seal, which means it is kept confidential and is not served on the defendant (31 U.S.C. § 3730(b)(2)). At the same time, the relator serves the government with a copy of the complaint and a written disclosure of substantially all the material evidence the relator possesses. The seal serves two purposes: it gives the government room to investigate without alerting the target, and it protects the relator’s identity during the earliest and most sensitive stage of the case.
How Long Does the Government Take to Review the Case?
By statute, the government has an initial 60 days to investigate the complaint and decide whether to intervene (31 U.S.C. § 3730(b)(2)). In practice, courts routinely grant extensions, so the seal commonly stays in place for one to three years while the Department of Justice reviews documents, may interview the relator, and coordinates with the affected agency. A well-organized disclosure that makes the government’s investigation easier is one of the most valuable things a relator can provide during this period.
What Happens When the Government Decides Whether to Intervene?
After investigating, the government has three choices:
- it can intervene and take over the case,
- decline and let the relator proceed alone, or
- move to dismiss.
If it intervenes, the case is unsealed and the Department of Justice leads the prosecution. If it declines, the relator may continue with private counsel. The government intervenes in roughly one in four cases, and its decision is often the single biggest factor in the outcome, as well as in the relator’s eventual share.
What Happens After the Case Is Unsealed?
Once the case is unsealed, it proceeds much like other civil litigation. The defendant is finally served and files a response, both sides exchange evidence through discovery, and the matter is resolved by settlement, judgment, or trial. A declined case is harder, but it is far from hopeless: two of the largest recoveries of fiscal year 2025 came from cases the government declined to join, and the relators pursued to verdict.
What Can a Whistleblower Receive If the Case Succeeds?
If a qui tam case ends in a settlement or judgment, the whistleblower’s payoff has two separate parts. The first is the relator’s share of what the government recovers, which generally runs from 15 to 30 percent depending on whether the government intervened in the case (31 U.S.C. § 3730(d)). Because the government’s recovery can include treble damages plus a civil penalty of $14,308 to $28,619 for each false claim, the pool the percentage is drawn from is often far larger than the amount originally lost, so even a mid-sized case can produce a meaningful award. The full breakdown of how the percentage is set is on my False Claims Act overview.
The second part is separate from that share: a successful relator may also recover reasonable attorney’s fees, costs, and expenses from the defendant, so the reward is not consumed by legal fees.
If the whistleblower was fired, demoted, or otherwise punished for coming forward, a retaliation claim under 31 U.S.C. § 3730(h) can add further recovery, including reinstatement and double back pay, on top of any qui tam share. I explain those remedies on my illegal retaliation page.
Every case is different, and the amount of any award depends entirely on the size of the recovery and the specific facts, so no particular result can be promised. Relators I have represented have received significant awards, including the examples described on my results page.
What Makes Qui Tam Cases Different From Ordinary Lawsuits?
Qui tam cases are not litigated like a normal civil lawsuit. They are sealed at the outset, they usually require lengthy investigation before anything becomes public, and they involve complex strategic decisions, particularly when the same facts could also support criminal charges against the defendant. The False Claims Act was designed to let whistleblowers expose fraud using private resources rather than waiting for the government to find it on its own, and that design shapes every stage of the case. Because of the seal and the parallel criminal exposure, these matters call for counsel who handles them regularly.
Is a Whistleblower Protected From Retaliation During the Process?
Yes. The False Claims Act’s anti-retaliation provision (31 U.S.C. § 3730(h)) protects employees, contractors, and agents who take lawful steps to stop or report fraud, and remedies can include reinstatement, double back pay, and litigation costs. A retaliation claim can be brought together with or separately from the sealed case, though the timing raises real strategic issues. I cover these protections in depth on my pages about whistleblower protection and illegal retaliation.
Why Should a Whistleblower Act Quickly?
Two features of the law reward moving early. Under the first-to-file rule, only the first relator to bring a set of allegations can recover on them, so a later filing can be dismissed no matter how strong it is. Strict filing deadlines also apply. The specific time limits for filing are set out on my False Claims Act overview, and together with the first-to-file rule they are reason enough to seek counsel as soon as fraud is suspected.
How Much Does It Cost to File a Qui Tam Lawsuit?
A whistleblower generally does not pay out of pocket to bring a qui tam case. I handle these matters on a contingency basis, advancing the work of preparing and filing the case, so there is no attorney’s fee unless there is a recovery, and successful relators may also recover reasonable fees and costs from the defendant. More detail is on my fees page.
Individuals who believe they have evidence of fraud against a government program are encouraged to call Teller Law at (206) 324-8969 for a free, confidential consultation about the next steps. It is best to speak with a lawyer before discussing the matter with anyone else.