The sealed stage
Most private False Claims Act cases begin with a complaint filed under seal and a written disclosure of the relator's evidence given to the government. During the seal, Justice Department attorneys and agency investigators may interview the relator, issue civil investigative demands to the company, and consult with criminal prosecutors. The initial seal period is short, but it is commonly extended, sometimes many times, while the investigation continues. A company may learn of the investigation through a demand for documents without being told a qui tam complaint is behind it. In some cases the government asks the court to partially lift the seal so the parties can discuss resolution.
The intervention decision
At the end of the investigation the government decides whether to intervene. If it intervenes, it takes primary responsibility for the case, though the relator remains a party. If it declines, the relator may continue alone, and the government keeps the right to monitor the case, to intervene later for good cause, and to seek dismissal, which courts have allowed even after an initial decline. Many cases settle around the time of the intervention decision, and settlements typically involve separate negotiations over the relator's share, attorneys' fees, and any retaliation claim. A decline does not mean a case lacks merit, and an intervention does not mean liability has been established.
Planning for the long middle
Whichever side you are on, a False Claims Act case usually takes far longer than people expect, and decisions made early carry through to the end. For relators, that means keeping the seal, staying in touch with counsel, and passing new information to the government through your lawyer. For companies, it means a consistent preservation plan, careful handling of employees who may be witnesses, and early analysis of the damages model the government is likely to use. In a first meeting we place your matter on this timeline, review what has been filed or produced, and identify the next decision point.
