Discovering that your employer is defrauding the government, whether through false billing, inflated contracts or fake compliance records, can put you in a difficult position. You may be worried about what reporting it could cost you, both legally and professionally. Understanding how a qui tam lawsuit actually works can help you know what you are getting into before you take that step.
A qui tam lawsuit lets you sue on the government’s behalf
Qui tam is a legal mechanism built into several laws, including the federal False Claims Act and Colorado’s own versions covering general fraud and Medicaid fraud specifically. Together, these laws allow you, as a private individual, to file a lawsuit against a company or person defrauding the federal or state government, even if the fraud did not personally harm you.
In this role, you are a relator. If your case succeeds, you can receive a share of whatever the government recovers, generally between 15 and 30%.
Your case stays sealed while the government investigates
Unlike most lawsuits, you file your qui tam complaint under seal, meaning it stays confidential and does not reach your employer right away. The federal or state government generally has 60 days to investigate your claims and decide whether to take over the case itself or let you pursue it independently. This period is often extended while the investigation continues.
You are protected from retaliation
Federal and Colorado state laws prohibit your employer from firing, demoting or otherwise punishing you for bringing a qui tam claim or assisting in one. If retaliation happens anyway, you may have a separate legal claim on top of your qui tam case, with remedies under Colorado law including reinstatement, double back pay and interest.
Seek guidance before you file
Your qui tam case involves strict procedural rules, and mishandling the filing or disclosure requirements can jeopardize your claim. Reviewing your situation with an attorney experienced in whistleblower cases can help you understand whether you have a valid claim and how to protect yourself going forward.