WHO IS LIABLE?
Individuals and Businesses: Virtually any individual or company which does business with the government, sells something to the federal government, or any agency or branch thereof, can be a defendant in a qui tam action. Claims can range from charging the government for defective products, to failing to advise a government agency that a seller has been selling goods to the government agency at full price, while offering a discount price to others.
Government Contractors and Subcontractors: Anyone who contracts to provide services or goods to the federal government can be a defendant for a vast array of qui tam claims.
Medical Providers: Doctors, hospitals, HMO’s and clinics are often defendants in qui tam actions, for medicaid/medicare fraud and a wide range of fraudulent billing practices which can range from charging for services not performed, to performing services which were unnecessary.
Drug and Medical Device Companies: Drug companies and companies which manufacture, sell, lease or otherwise provide virtually any type medical device are often named as defendants as qui tam actions for a wide range of fraudulent activities and schemes.
These schemes can range from providing illegal incentives to hospitals, clinics, surgical centers or doctors to prescribe their drugs, (such as kickbacks, discounts, rebates or even gifts), to deliberately marketing their products for uses which have not been approved by the government.
Local Government Agencies and Officials: Because they are recipients of large amounts of federal money, local governments and their officials can be defendants in qui tam actions.
Private Universities: Private universities have been charged as defendants in qui tam actions that involved their handling of federal grants and research and development money.
Others: Virtually anyone who receives money from the federal government or pays money to the federal government, can engage in conduct which would give rise to a qui tam violation. Activities which constitute a violation under the False Claims Act are:
(a) knowingly presenting, or causing to be presented, to the federal government a false or fraudulent claim for payment;
(b) knowingly using, or causing to be used, a false record or statement to get a claim paid by the federal government;
(c) conspiring with others to get a false or fraudulent claim paid by the federal government;
(d) knowingly using, or causing to be used, a false record or statement to conceal, avoid or decrease an obligation to pay money or transmit money to the federal government. For a list of major companies and entities which have settled allegations or claims under the False Claims Act,
For a list of major companies and entities which have settled allegations or claims under the False Claims Act, click here.
For information about actual cases, go to the news section.