A False Claims Act qui tam case starts with a private person, called a relator, who files a lawsuit in the government's name and under seal, and the case then moves through a distinct sequence: a sealed investigation, a government decision whether to take over, and then litigation if the case proceeds. If your company has received a document subpoena in a sealed matter, learned that a former employee filed a complaint, or been named in an unsealed qui tam suit, understanding that sequence explains what has already happened and what comes next. This guide walks through the process in plain terms. It is an evergreen explainer, not an update on any particular case.
The statute and the two ways it is enforced
The False Claims Act, 31 U.S.C. §§ 3729 through 3733, imposes civil liability on anyone who knowingly presents a false or fraudulent claim for federal payment, or knowingly uses a false record material to such a claim. Liability is severe. The statute generally provides for treble damages and civil penalties, subject to its provisions and the particular violation, so exposure can exceed the government’s loss.
The statute can be enforced two ways. The Attorney General can sue directly. Or a private person can sue "for the person and for the United States Government," in the government's name, through the qui tam provisions. The private enforcement route has its own procedures, which this guide explains.
The life of a qui tam case
The sealed filing. The relator files the complaint under seal and serves it, along with the supporting evidence, on the government alone, not on the defendant. The complaint stays sealed for at least 60 days while the government investigates. 31 U.S.C. § 3730(b)(2). In practice the seal is often extended, sometimes for years, and a defendant may first learn of a sealed matter through a subpoena or a civil investigative demand rather than the complaint itself.
The government's investigation. During the seal, the government evaluates the allegations, often using document demands and interviews. This is the stage at which a company may receive a civil investigative demand, and it is a critical window, because the government's view of the case is still forming.
The intervention decision. At the end of the seal, the government chooses whether to intervene and take over the lead role, or to decline and let the relator proceed alone. Intervention is a meaningful signal about how the government reads the case, though a declined case can still proceed and settle.
The government's continuing dismissal power. After declining, the government may seek later intervention for good cause and, if it intervenes, move to dismiss over the relator’s objection. In United States ex rel. Polansky v. Executive Health Resources, Inc., 599 U.S. 419 (2023), the Supreme Court held that a court reviews such a motion under the ordinary voluntary-dismissal standard and should grant it in all but the most exceptional cases. For a defendant facing a weak declined case, persuading the government to exercise that power is a real, if deferential, avenue.
Litigation and resolution. If the case proceeds, it is litigated like other civil fraud litigation, through pleadings, motions, discovery, and either settlement or judgment. Section 3730(d) generally provides a 15–25 percent share when the government proceeds and 25–30 percent when it does not, with exceptions and possible reductions or disqualification. Whether a settlement includes admissions depends on its terms.
The threshold bars that end cases early
Several provisions can end a qui tam case before the merits, and they are among the first things a defendant's counsel evaluates.
- The first-to-file bar blocks a later relator from suing on the same underlying facts as an earlier pending action. 31 U.S.C. § 3730(b)(5).
- The public-disclosure bar addresses substantially similar allegations or transactions disclosed through specified channels, subject to the government’s opposition to dismissal and the statutory original-source exception. 31 U.S.C. § 3730(e)(4).
- The pleading standard requires fraud to be alleged with particularity under Federal Rule of Civil Procedure 9(b), and many complaints fail at this threshold.
- The seal requirements themselves can matter, because a relator who violates them may face consequences for the claim.
None of these reaches whether the conduct was actually fraudulent. Their application depends on the complaint, the procedural record and the statutory exceptions.
A short glossary
- Qui tam: a suit brought by a private person on the government's behalf under the False Claims Act.
- Relator: the private person who brings a qui tam suit, sometimes called a whistleblower.
- Seal: the period during which the complaint is confidential and served only on the government.
- Intervention: the government's decision to take over the lead role in the case.
- Treble damages: three times the government's actual damages, the FCA's core remedy, plus per-claim penalties.
- First-to-file bar / public-disclosure bar: threshold rules that can defeat a later or already-public claim.
- Original source: a person meeting either statutory route: qualifying disclosure to the government before public disclosure, or independent knowledge that materially adds to public allegations and was voluntarily provided to the government before suit. § 3730(e)(4)(B).
Questions a business reader should be ready to ask
These are prompts for a conversation with counsel, not steps to take alone.
- If we received a subpoena or civil investigative demand, is there a sealed qui tam case behind it?
- What does a preservation obligation require of us right now?
- Do any threshold bars apply to this complaint, such as first-to-file, public disclosure, or Rule 9(b)?
- Is this a case the government is likely to intervene in, decline, or move to dismiss?
- What is our realistic exposure given treble damages and per-claim penalties?
For a separate discussion of constitutional challenges, see our September FCA analysis. That article discusses the September 2026 decision and the issues remanded for further consideration. It complements this process guide. If your business is facing a False Claims Act matter and you want to understand where it sits in this process, we are available to discuss your circumstances.
Sources and further reading
- Qui tam procedure: 31 U.S.C. § 3730
- False Claims Act liability: 31 U.S.C. § 3729
- Polansky: Supreme Court opinion
Explore the Healthcare Fraud resource hub or contact the firm to discuss your circumstances.
