Qui Tam Actions (Litigator Series)

THIS CASEBOOK contains a selection of 43 U. S. Court of Appeals decisions that discuss and analyze issues surrounding qui tam actions. The selection of decisions spans from 2013 to the date of publication.

The False Claims Act imposes civil liability on those who submit false or fraudulent claims for payment to the United States, 31 U.S.C. § 3729(a) (1) , "and authorizes qui tam suits, in which private parties bring civil actions in the Government's name, § 3730(b) (1) ." Schindler Elevator Corp. v. United States ex rel. Kirk, 131 S. Ct. 1885, 1889 (2011) . If a qui tam action is successful, the party bringing it - known as the relator - shares in the proceeds of the action or settlement. See 31 U.S.C. § 3730(d) . A relator seeking to bring a qui tam action under the FCA must first disclose his claims to the government, and then the government decides whether to take over the action or allow the relator to proceed. See id. at § 3730(b) . US v. Chattanooga-Hamilton County Hospital Authority, (6th Cir. 2015) .

The False Claims Act enables private citizens to recover damages on behalf of the United States by filing a qui tam action against a person who

(1) knowingly presents, or causes to be presented, to an officer or employee of the United States Government . . . a false or fraudulent claim for payment or approval; [or]

(2) knowingly makes, uses, or causes to be made or used, a false record or statement to get a false or fraudulent claim paid or approved by the Government.

31 U.S.C. § 3729(a) (1) -(2) (2006) . Urquilla-Diaz v. Kaplan University, (11th Cir. 2015) .

Section 3729(a) (1) (A) prohibits any person from knowingly "caus[ing] to be presented" to the Government a "false or fraudulent claim for payment." 31 U.S.C. § 3729(a) (1) (A) . To prove a false claim, a plaintiff must allege four elements: (1) a false statement or fraudulent course of conduct; (2) made with the requisite scienter; (3) that is material; and (4) that results in a claim to the Government. United States ex rel. Harrison v. Westinghouse Savannah River Co., 352 F.3d 908, 913 (4th Cir. 2003) (Harrison II) . A false statement is material if it has "a natural tendency to influence, or be capable of influencing," the Government's decision to pay. 31 U.S.C. § 3729(b) (4) . Scienter under the FCA encompasses actual knowledge, deliberate indifference, and reckless disregard, but does not require proof of specific intent to defraud. 31 U.S.C. § 3729(b) (1) . US v. Triple Canopy, Inc., (4th Cir. 2015) .

The phrase "false or fraudulent claim" should be "construed broadly," Harrison I, 176 F.3d at 788, "to reach all types of fraud, without qualification, that might result in financial loss to the Government," United States v. Neifert-White Co., 390 U.S. 228, 232 (1968) . Liability thus attaches "any time a false statement is made in a transaction involving a call on the U.S. fisc." Harrison I, 176 F.3d at 788. US v. Triple Canopy, Inc.

"Liability under the False Claims Act arises from the submission of a fraudulent claim to the government, not the disregard of government regulations or failure to maintain proper internal procedures." Corsello v. Lincare, Inc., 428 F.3d 1008, 1012 (11th Cir. 2005) . Simply put, the "sine qua non of a False Claims Act violation" is the submission of a false claim to the government. Id. (quoting United States ex rel. Clausen v. Lab. Corp. of Am., 290 F.3d 1301, 1311 (11th Cir. 2002) ) . Urquilla-Diaz v. Kaplan University, ibid.