Qui Tam and The False Claims Act
Qui Tam is an abbreviation from the Latin phrase “qui tam pro domino rege quam pro se ipso in hac parte sequitur,” which means, “Who sues on behalf of the king as well as for himself.” The word alone means, “in the name of the king.”
This provision of the False Claims Act (FCA) allows whistleblowers to receive payment for filing suits on the government’s behalf for false or fraudulent claims submitted by an individual or organization. According to the Fraud statistics noted by the Department of Justice, the 2024 Fiscal year marks a record year for the number of qui tam suits filed at 979. The total reported settlements and judgments from these suits and others from years prior exceeded $2.4 billion.
What is the False Claims Act?
The FCA (False Claims Act) is a powerful federal law originally enacted during the Civil War in 1863 to combat fraud against the United States government. The FCA imposes liability on individuals and companies who defraud government programs. Over time, the act has evolved into a critical legal tool for fighting fraud in government contracting, healthcare, and now, cybersecurity compliance. It is the legal backbone of many high-profile whistleblower cases and is used to recover government losses due to fraud, waste, and system abuse.
What Does the Reward Look Like?
The Qui Tam provision empowers private individuals, known as qui tam relators or whistleblowers, to file lawsuit on behalf of the government when they suspect fraud. If the government joins the case and the lawsuit is successful, the whistleblower may receive 15% to 30% of the recovery. These incentives have led to the exposure of major fraud schemes and billions in recovered federal funds. For individuals aware of noncompliance or deception in industries tied to federal expenses, whistleblowing is not only a civic act but a potentially life-changing decision.
The False Claims Act and Protection for Whistleblowers
Recognizing the risks whistleblowers take, the FCA includes provisions to protect them from retaliation. Employers are prohibited from harassing, demoting, terminating, or otherwise discriminating against an employee for lawful acts conducted in furtherance of a qui tam action. If retaliation occurs, whistleblowers may be entitled to reinstatement, double back pay, and compensation for damages. These protections are critical for encouraging individuals to speak out without fear of career-ending consequences.
According to Section 3730 of the False Claims Act, “Any employee, contractor, or agent shall be entitled to all relief necessary to make that employee, contractor, or agent whole, if that employee, contractor, or agent is discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against in the terms and conditions of employment because of lawful acts done by the employee, contractor, agent or associated others shall include reinstatement with the same seniority status that employee, contractor, or agent would have had but for the discrimination, 2 times the amount of back pay, interest on the back pay, and compensation for any special damages sustained as a result of the discrimination, including litigation costs and reasonable attorneys’ fees.”
How Does This Relate to CMMC?
As cybersecurity becomes a mandated focus for federal contractors and their External Service Providers (ESPs), the Cybersecurity Maturity Model Certification (CMMC) has become a required standard for Department of Defense (DoD) contractors and subcontractors. Under CMMC, organizations must implement and maintain a prescribed set of cybersecurity practices and processes to protect Controlled Unclassified Information (CUI).
This is where the False Claims Act becomes highly relevant. If a company falsely attests to being compliant with CMMC requirements to secure or renew a federal contract (when they are not) it may constitute a false claim under the FCA. This opens the door for whistleblowers, including internal staff, compliance officers, or consultants, to file qui tam suits aligning cybersecurity noncompliance.
The Bottom Line
As the government raises the bar on cybersecurity and accountability, organizations handling federal data must take compliance seriously. Not just to pass audits, but to avoid legal exposures. Falsifying or overstating your security posture can lead to massive penalties like contract loss and qui tam litigation that put companies (and their leadership) at significant risk. CMMC is just as must of a legal obligation as it is a certification and thus, it should be treated as such. That is why the False Claims Act, backed by an empowered whistleblower community, is one of the government’s most effective tools to enforce its legality.
If you’d like to learn more or if you have any questions, feel free to reach out to us.