Criminal Defense Lawyers

What you should do when a qui tam lawsuit has been filed against your business

Last Updated on: 15th March 2025, 10:48 pm

YOU JUST GOT SERVED WITH A QUI TAM LAWSUIT

Imagine you walk into your office, and someone hands you papers that were filed in a federal court. You glance at them, and you realize it is a qui tam lawsuit. Your heart might skip a beat, because any lawsuit that was initiated under the False Claims Act can bring huge penalties, plus a world of uncertainty. You wonder, “What do I do now?” At Spodek Law Group, we get it. This can be scary, and you need a solid plan—fast. We are a nationwide federal defense law firm, created by Todd Spodek, and our team has extensive experience defending clients against tough legal challenges.

If you face this lawsuit, do not ignore it. Ignoring a qui tam lawsuit that was filed against your business may cause huge financial penalties. These penalties can include triple damages, steep fines, and, in extreme cases, criminal repercussions. That means the government, which can bring enormous resources to bear, might investigate your business practices. To learn more about how the Department of Justice handles these cases, you can visit their official website. Pay close attention, because you want to protect everything you’ve worked so hard to build.

WHAT IS A QUI TAM LAWSUIT?

A qui tam lawsuit is a legal action that was brought by a whistleblower who was authorized under the False Claims Act to report alleged fraud against the government. This whistleblower, who is also called the “relator,” claims you submitted false or fraudulent claims to get government money, which might mean grants, Medicare payments, or other public funds. There is a real risk that a successful lawsuit will lead to triple damages, and that can be devastating for your finances. If the whistleblower wins, the whistleblower can receive a percentage of the recovered funds.

If your business that was named in a qui tam suit relied on government funds, do not take this lightly. Fraud that was alleged in a qui tam lawsuit could lead to severe consequences. Consequences can involve not only monetary penalties but also potential exclusion from future federal contracts, which might cripple your revenue. The government takes these allegations very seriously. For you, the bottom line is straightforward: you must strategize wisely, because any failure to respond effectively may put your entire operation in jeopardy.

WHY QUI TAM CASES ARE DIFFERENT

You may be wondering, “A lawsuit is a lawsuit, right? Why is this any different?” A qui tam lawsuit that was filed under the False Claims Act is unique because it often involves government prosecutors, which means the Department of Justice might step in. That is a big deal, and it can mean bigger stakes, bigger investigations, and more intense scrutiny. If they decide to intervene, your exposure to penalties grows exponentially. In some scenarios, you risk criminal charges if prosecutors suspect intentional fraud. A criminal conviction, that was based on fraud, may carry fines, restitution, or even prison time.

Still think it’s no big deal? Let’s be brutally honest: a qui tam lawsuit, if left unchecked, can wipe out your savings, tarnish your reputation, and cause your key customers or partners to bail. That means your entire business, which you spent years building, can come crashing down.

FIRST MOVES THAT YOU SHOULD MAKE

Step One: Stay Calm, but Act. Panic creates poor decisions, and poor decisions can ruin your legal defense. If you are flustered, you risk letting deadlines slip or missing vital details in the complaint that was served. This is not a time for excuses. You either face it head-on, or you watch the lawsuit gain momentum. That momentum may result in bigger penalties, and the ripple effect can spill over to your personal and professional life.

Step Two: Contact an Experienced Law Firm Immediately. Do not rely on guesswork. The Spodek Law Group has the skill, experience, and nationwide reach to defend you. Our criminal attorneys, who have handled countless federal matters, understand how to navigate complex regulations that are enforced by agencies like the DOJ. A quick call that is made to a lawyer can help you get ahead of the problem. If you hesitate and try to handle it alone, you may fail to file the right documents on time, which can hand the prosecution an easy victory.

Step Three: Gather All Relevant Information. Internal documents that were created by your business—such as emails, billing records, or contracts—can reveal the truth behind the alleged fraud. If your records look sloppy or incomplete, the government might spin that as an attempt to hide misconduct. That can make things worse. By collecting proof of compliance, you enhance your credibility and show that the allegations might be baseless. If you act passively, the whistleblower might control the narrative, and that can back you into a corner.

POTENTIAL PENALTIES YOU FACE

Civil Penalties That Were Allowed Under the False Claims Act can range from thousands of dollars per false claim to triple the total damages. This means if the government paid your business a sum of money, and that payment was based on false statements, you could owe three times that amount. The debt can cripple your budget, plus you face a damaged reputation. If you default on that judgment, you might lose your assets, your credit rating, and your ability to conduct business with government agencies.

Criminal Charges That Were Filed for Fraud can include imprisonment if prosecutors can prove intent, and that can completely destroy your life. If you are found guilty, you can face restitution orders, which might extend for years. That can block you from starting over, because most of your income or company revenue could be garnished to cover that restitution. This risk means you cannot ignore the potential for criminal liability. The consequences may haunt you even after you serve your sentence, which means you will struggle to rebuild your professional standing.

STRATEGIES THAT WE USE TO DEFEND YOU

Proving No Intent. Intent that was never present can be a game-changer in your defense. If we show that your business made an honest mistake in billing or record-keeping, we weaken the argument that you intentionally defrauded the government. Without intent, it becomes harder for prosecutors to sustain the harshest penalties. That difference often spells the line between a crippling judgment and a reduced charge or dismissal.

Attacking the Whistleblower’s Credibility. The whistleblower, who is often an ex-employee or business partner, may have a motive to exaggerate. If we uncover evidence that was written by them—such as contradictory emails, questionable motives, or prior wrongdoing—we discredit their allegations. A whistleblower who is discredited could lose favor with the government, which might lead to a settlement or a weaker case overall.

Challenging Evidence That Was Illegally Obtained. If investigators used methods that violated your rights, the court might throw out that evidence. Evidence that was illegally obtained becomes inadmissible. This matters because once that evidence is removed, the foundation of the case can collapse. When a prosecutor loses key exhibits or documents, the possibility of a settlement goes way up, and that can help you avoid a trial that might become very costly.

OUR BRUTALLY HONEST TAKE

You might think you can settle quietly and carry on. That mindset might be naive. A qui tam suit that is left unresolved can snowball, because the DOJ can choose to join the lawsuit at any point, which increases your risk of severe penalties. If your team tries to handle this case alone, you might make rookie mistakes that cripple your defense. Harsh reality: you do not have the luxury of saving face by doing nothing. Either you take an aggressive, strategic stance, or you open the door to catastrophic losses.

That is why we are direct and demanding. We see the bigger picture, and we want you to succeed. We refuse to tolerate inaction or flimsy excuses. You either pursue the best defense, or you watch your business get crushed by legal fees, potential prison time, and a destroyed brand image.

HOW SPODEK LAW GROUP CAN HELP YOU

Our law firm, which is led by Todd Spodek, has experience dealing with high-profile federal cases that require knowledge of intricate laws and tough negotiations. We have attorneys who understand both the strategic angles and the psychological pressures of a lawsuit like this. If you hire us, we commit to investigating your case, identifying all leverage points, and challenging every weakness in the prosecutor’s argument.

We are available 24/7 to help you. That means we do not give you the run-around if you call late or have an urgent need for advice. We know that speed and expertise can determine if your business survives this ordeal. That is why we stay on top of every development, use every advantage we can find, and refuse to settle for sloppy lawyering. We hold ourselves to high standards, and we expect you to take your defense just as seriously.

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LAST WORD

If a qui tam lawsuit that was filed has landed in your hands, take action immediately. Any delay or mistake can haunt you for years, damage your credibility, and jeopardize your livelihood. Spodek Law Group, which is a nationwide federal defense law firm, is prepared to fight for you. We know how to navigate the storm, but we also need you to be ready, honest, and committed. Call us to get a risk free consultation, because your future is too important to leave to chance.

Disclaimer: No part of this article constitutes legal advice, nor does it create an attorney-client relationship. Every case is different, and you should consult an attorney in your jurisdiction for specific guidance. You can learn more about relevant laws and policies at the U.S. Department of Justice official website.