Qui Tam

Facts & Figures

Each year the Department of Justice reports on the significant success of False Claims Act cases brought by individual citizens. In the years immediately after 1986 when the False Claims was amended, most qui tam cases involved fraud by defense contractors against the Pentagon. For instance, from 1998 through 1992, health care accounted for approximately 15% of all new qui tam cases. More recently, however, the number of health care fraud qui tam cases has been rising steadily. In 1998, the most recent year for which figures are available, 61% of all new cases involved allegations of fraud against government-funded health insurance programs, such as Medicare and Medicaid.

The government’s most recent figures demonstrate the significant growth in numbers of cases and dollars recovered through qui tam actions since the False Claims Act was amended in 1986. The government reports that over 3,300 qui tam cases have been filed since 1986.

Since the 1986 amendments to the False Claims Act became effective, the whistleblower provisions of the False Claims Act have yielded more than $4.2 billion in recoveries to the United States Treasury. The average recovery in all qui tam cases in which a recovery is made is approximately $5.8 million. As the following graph illustrates, qui tam recoveries in cases pursued by the government have grown exponentially in recent years.

Of the over $4.2 billion that has been recovered through qui tam, only $211 million — about 5% of all qui tam recoveries — has occurred in cases that were declined by the Department of Justice. The Department of Justice reports that it intervenes in less than 22% of the qui tam cases that are filed.

Relator’s share awards when the Department of Justice decides to participate in the action have totaled $594 million or approximately 16% of the proceeds recovered. Successful relators have received an average award of slightly more than
$1.0 million.