Qui tam Whistleblower Rewards

Qui tam whistleblower awards are financial incentives given to encourage relators to expose fraud committed against the U.S. and many states’ governments. The qui tam system provided by the False Claims Act offers a strong motivation for whistleblowers to report fraud that the government would otherwise be unaware of.

What is a qui tam lawsuit?

Cases filed under the False Claims Act (FCA), a U.S. antifraud law first enacted in 1863, are known as qui tam lawsuits.  The FCA enables people to file lawsuits on behalf of the federal government and several state governments. The plaintiffs, known as whistleblowers or relators, can expose different types of wrongdoing under the FCA. This wrongdoing may take the form of fraud against federal programs or contracts. Common types of fraud include:

• Healthcare fraud
• Procurement fraud
• Grant fraud
• Pandemic fraud

Once a qui tam relator files their sealed complaint in federal district court, the government reviews the filing, begins its own confidential investigation, and determines whether it will intervene and join the lawsuit. If the government declines to intervene in the lawsuit, the whistleblower and their attorney can choose to pursue the claim on their own and the relator would be entitled to a greater share of the recovery if successful.

Under the FCA, a qui tam lawsuit must be brought within one of two time periods:

• Six years from the date of the violation, or
• Three years after the government became aware (or should have known) of the wrongdoing

Whichever window is later is the applicable timeframe.  In 2019, the U.S. Supreme Court affirmed a lower court ruling that a 10-year statute of limitations applies to all qui tam cases, whether or not the government intervenes.

Relators can receive qui tam whistleblower rewards of 15% to 30% of a settlement or judgment if the case is successful. The qui tam provisions of the False Claims Act were updated in 1986. Since then, whistleblower enforcement actions have recovered more than $55 billion.  During fiscal year (FY) 2024 alone:

• A record 979 qui tam lawsuits were brought.
• Over $2.9 billion was recovered under the FCA.
• More than $2.4 billion of those awards came from qui tam whistleblower cases.

The FCA requires that whistleblowers receive monetary incentives if they report fraud related to government contracts or other federal programs that leads to the successful resolution of a qui tam case, either through settlement or trial.

Factors influencing the whistleblower award amount

Certain factors influence the whistleblower award amount in a qui tam case. The FCA does not provide any limits on award amounts. Instead, the value of the whistleblower’s information is considered when determining their percentage of the amount recovered.

Whistleblowers who don’t follow the requirements of the False Claims Act may not be eligible for awards. For example, if they reveal the filing of a sealed FCA complaint or were somehow involved in the wrongdoing, they might be ineligible to recover.  Working with a lawyer can be beneficial, especially when an award amount is being determined.

The FCA qui tam rules require a relator to have an attorney before filing their case. Qui tam lawyers can help their whistleblowers obtain a qui tam award by:

• Confirming the reported action meets FCA requirements
• Using their legal knowledge to draft a civil complaint
• Complying with the rules for filing a complaint under seal
• Litigating the qui tam case if the government decides not to intervene
• Helping the relator negotiate a fair qui tam reward if the case is successful

Qui tam lawyers play a critical role in helping whistleblowers expose and prosecute fraud that has been committed against the government.

Successful qui tam actions have resulted in some significant award amounts, including:

• February 2025: Lockheed Martin Corporation agreed to pay $29.7 million to settle a whistleblower claim that it violated the FCA by allegedly including faulty pricing in military aircraft contracts.
• September 2024: Acadia Healthcare Company, Inc. agreed to pay $20 million to settle an FCA action alleging that the company defrauded Medicare, Medicaid, and TRICARE.  The relators, former employees of Acadia Healthcare Company, received a 19% award for bringing the qui tam case.
• December 2023: Community Health Network entered into a $345 million settlement with the DOJ for knowingly submitting Medicare claims in violation of the Stark Law and the False Claims Act.

Motley Rice was not involved in these cases. 

What are the criteria for qui tam whistleblower awards?

The FCA does not explicitly provide any guidance or limitations on qui tam whistleblower awards. However, the more valuable the information the relator provides, the better the chances of a successful case and a higher award amount.

Do whistleblowers get paid?

Whistleblowers get paid a percentage of the amount that the government recovers, either through settlement or trial, and the percentage range varies under the various federal laws:

• False Claims Act: The FCA allows a relator to receive 15% to 30% of the funds recovered through a successful lawsuit involving fraud related to government contracts or programs.
• Dodd-Frank Act: Under this law, whistleblower awards typically range from 10% to 30% of the proceeds from a successful securities and commodities fraud case.
• IRS whistleblower law: The IRS mandates that whistleblowers receive monetary awards of 15% to 30% of the amount collected related to tax fraud.

What is the average payout for a qui tam whistleblower reward?

Qui tam whistleblowers can receive an award of 15% to 30% of a settlement or judgment in a successful lawsuit. The exact amount typically depends on the nature of the offense, the value of the evidence provided to build the case, and whether the government intervened in the action.

Motley Rice lawyers have represented numerous individuals in a broad range of qui tam actions, including on behalf of whistleblowers who have exposed fraudulent practices by companies such as:

• Defense procurement contractors
• Financial services companies
• For-profit colleges
• Healthcare providers
• Pharmaceutical companies
• Tobacco companies

Our team works to protect the rights of potential whistleblowers and helps them file accurate and thorough complaints and reports through the applicable institution.

Read more on our whistleblower litigation experience.