Qui Tam
What is Qui Tam?
A lawsuit filed by a private person (whistleblower) on behalf of the government against a company that has defrauded the government.
Why does Qui Tam matter?
Qui tam lawsuits under the False Claims Act allow whistleblowers to sue companies on behalf of the U.S. government — and collect 15-30% of any recovery.
In pharma, qui tam cases typically involve off-label marketing, kickbacks to physicians, overbilling government healthcare programs (Medicare, Medicaid), or manufacturing fraud.
The whistleblower files under seal. The DOJ investigates (often for years) and decides whether to intervene. If DOJ joins, the case is far more likely to result in a massive settlement.
Some of the largest pharma settlements in history started as qui tam: GlaxoSmithKline ($3B, 2012), Pfizer ($2.3B, 2009), Abbott ($1.5B, 2012).
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