When to File

The False Claims Act only rewards someone who files a complaint based upon non-public information. If you only know about a fraud as a result of a newspaper article, for example, you may not be eligible to receive a reward. (However, if you know facts about the fraud beyond those already disclosed publicly, you may nevertheless be able to file a Qui Tam action.)

The fact the government may already be aware of a fraud, and may be even investigating it, doesn't necessarily mean you cannot receive a reward pursuant to the False Claims Act. First, the Act provides that a reward is paid to the first person to file a Qui Tam action concerning the fraud. While the Act requires the Qui Tam action be based on non-public information, it does not explicitly require the suit be filed before the government is aware of the fraud. Second, if you were the person who originally told the government about the fraud, even if the fraud is now public, you still may qualify for a reward as the original source of the information.

The law is complicated concerning when someone can receive a reward for filing a Qui Tam action even if the government is already aware of aspects of the fraud or allegations have already been made public. The bottom line is this. If you are aware of facts related to a fraud and are considering a Qui Tam action under the False Claims Act, you should consult a lawyer to determine if it is still feasible for you to do so, despite any public disclosure or government knowledge.
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