1. Qui Tam Litigation Begins with a Sealed Federal Filing
A qui tam action begins differently from ordinary civil litigation. The relator files the complaint under seal and provides the government with the complaint and substantially all material evidence and information in the relator’s possession.
The Initial Filing Rules Apply to the Relator
- The complaint is filed in camera and remains under seal for at least 60 days.
- The relator serves the government with the required complaint and disclosure materials at that stage.
- The allegations may also involve broader False Claims Act liability questions.
Service on the Defendant Comes Later
- The complaint is not served on the defendant until the court orders service.
- The government may request extensions of the seal period for good cause.
- The defendant generally need not respond until 20 days after unsealing and service.
2. Government Intervention Changes Who Conducts the Case
During the seal period, the government reviews the allegations and decides whether to proceed. That decision changes who directs the litigation, but declining intervention does not end the action.
If the Government Proceeds
- The government assumes primary responsibility for prosecuting the action.
- The relator remains a party subject to statutory limits on participation.
- The matter may also overlap with broader government investigations.
If the Government Declines
- The relator may continue the action in the name of the United States.
- Declination should not be treated as a dismissal of the allegations.
- The defendant still must evaluate the complaint, evidence, and procedural posture.
3. Evidence Preservation and Internal Review Need Early Attention
When litigation or a government investigation is reasonably anticipated, relevant information should be identified and preserved. The records can extend well beyond the claims submitted for government payment.
Preservation Should Match the Allegations
- Relevant material may include contracts, billing files, certifications, emails, and compliance records.
- The review should identify employees, systems, and custodians tied to the disputed conduct.
- Fact development may overlap with internal investigation services.
Preservation Is Separate from Liability
- Preserving documents does not establish that the allegations are accurate.
- An internal review can examine knowledge, decision-making, and how claims or certifications were prepared.
- Privilege and work-product issues should be considered when the review is structured.
4. Federal Contractors May Have Separate FAR Duties
Not every qui tam defendant has the same procurement obligations. Federal contractors should review the contract, applicable FAR clauses, and available evidence before deciding whether separate disclosure or payment rules apply.
FAR 52.203-13 Can Require Disclosure
- When the clause applies, credible evidence of a civil False Claims Act violation can trigger written disclosure.
- The disclosure goes to the agency Office of Inspector General, with a copy to the Contracting Officer.
- Related requirements may also arise under government contracts.
Procurement Consequences Have Separate Standards
| Issue | Potential Consequence |
|---|---|
| Fraud-based payment request | Further advance, partial, or progress payments may be reduced or suspended if FAR requirements are met. |
| Responsibility concerns | Agency officials may examine contractor responsibility and compliance. |
| Fraud-related findings | Suspension or debarment exposure may arise under applicable procedures. |
Fraud-based payment request
- Potential ConsequenceFurther advance, partial, or progress payments may be reduced or suspended if FAR requirements are met.
Responsibility concerns
- Potential ConsequenceAgency officials may examine contractor responsibility and compliance.
Fraud-related findings
- Potential ConsequenceSuspension or debarment exposure may arise under applicable procedures.
5. Settlement and Dismissal Depend on Procedural Posture
The False Claims Act assigns different roles to the government, relator, and court depending on who conducts the action. A defendant should identify that posture before evaluating settlement or dismissal.
Government-Controlled Cases Follow Statutory Procedures
- When the government proceeds, it may settle even if the relator objects.
- The court must find the proposed settlement fair, adequate, and reasonable after a hearing.
- The government may also seek dismissal after notice and an opportunity for the relator to be heard.
Dismissal Requires Written Consent
- A qui tam action may be dismissed only with written consent of the court and Attorney General, with reasons stated.
- In a declined case, the relator may continue litigating in the name of the United States.
- A private agreement should not be assumed to terminate the federal action without the required procedure.
6. Frequently Asked Questions
How long can a qui tam case remain under seal?
The statutory minimum is 60 days. The government may request extensions for good cause, so the seal period can last longer.
When does a qui tam defendant have to respond?
The defendant generally is not required to respond until 20 days after the complaint has been unsealed and served under Rule 4.
Does DOJ declining intervention end the case?
No. The relator may continue to conduct the action in the name of the United States after the government declines to take over the case.
Does every federal contractor have the same FCA disclosure duty?
No. The contract, applicable FAR clauses, evidence, and procurement circumstances determine whether a separate disclosure duty applies.
7. Review Qui Tam Litigation Response Duties with SJKP
SJKP’s attorneys can review the sealed-filing framework, intervention posture, evidence-preservation needs, contractor disclosure requirements, and related procurement issues. The firm can also assess the federal procedural obligations that arise after unsealing and service.
08 Apr, 2026
