Al is an accountant for a large defense contractor, Bomb, Inc. In his work, he learns that Bomb, Inc. is overstating its expenses on government contracts and defrauding the federal government out of millions of dollars. Al can sue Bomb, Inc. on behalf of the government (a qui tam action). If he wins, the bulk of the damages will go to the government, but a share will go to Al.
Qui tam
Definition
In a qui tam action, a private party called a relator brings an action on the government's behalf. The government, not the relator, is considered the real plaintiff. If the government succeeds, the relator receives a share of the award. Also called a popular action.
For example, the federal False Claims Act authorizes qui tam actions against parties who have defrauded the federal government. 31 U.S.C. § 3279 et seq. If successful, a relator in a False Claims Act qui tam action may receive up to 30% of the government's award.
Illustrative caselaw
See, e.g. United States ex rel Eisenstein v. City of New York, 129 S.Ct. 2230 (2009).
See also
Intervention (the government may intervene in a qui tam action)
