Qui tam comes from the Latin phrase qui tam pro domino rege quam pro se ipso in hac parte sequitur, meaning “[he] who sues in this matter for the king as [well as] for himself.” Qui tam claims are filed under the False Claims Act, a federal law which allows people, commonly referred to as “whistleblowers,” to file actions claiming fraud against the government. Those filing such claims stand to gain a portion of recovered monies. Typically, claims are filed by people with insider knowledge of allegedly false claims, and often involve health care, military, or government spending programs.
Stakes are high for defendants in these actions as damages can be tripled if a violation is proven, and additional civil penalties may also apply. With stakes of this magnitude, our clients rely on us to defend them vigorously, and we have done so successfully in the areas of Medicare, Medicaid, and financial services.
We have successfully defended two separate financial institution clients in qui tam class actions regarding interest rates charged on loans guaranteed by the United States government. In Her v. Regions Financial Corp., 2008 U.S. Dist. LEXIS 103479 (W.D. Ark. December 22, 2008), the firm obtained dismissals of qui tam claims against Chambers Bank and Regions Bank. The firm has now successfully concluded two related qui tam actions against the same two banks.