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TITLE 31 - MONEY AND FINANCE
SUBTITLE III - FINANCIAL MANAGEMENT
CHAPTER 37 - CLAIMS
SUBCHAPTER III - CLAIMS AGAINST THE UNITED STATES GOVERNMENT
Sec. 3730. Civil actions for false claims
-STATUTE-
(a) Responsibilities of the Attorney General. - The Attorney
General diligently shall investigate a violation under section
3729. If the Attorney General finds that a person has violated or
is violating section 3729, the Attorney General may bring a civil
action under this section against the person.
(b) Actions by Private Persons. - (1) A person may bring a civil
action for a violation of section 3729 for the person and for the
United States Government. The action shall be brought in the name
of the Government. The action may be dismissed only if the court
and the Attorney General give written consent to the dismissal and
their reasons for consenting.
(2) A copy of the complaint and written disclosure of
substantially all material evidence and information the person
possesses shall be served on the Government pursuant to Rule
4(d)(4) of the Federal Rules of Civil Procedure. The complaint
shall be filed in camera, shall remain under seal for at least 60
days, and shall not be served on the defendant until the court so
orders. The Government may elect to intervene and proceed with the
action within 60 days after it receives both the complaint and the
material evidence and information.
(3) The Government may, for good cause shown, move the court for
extensions of the time during which the complaint remains under
seal under paragraph (2). Any such motions may be supported by
affidavits or other submissions in camera. The defendant shall not
be required to respond to any complaint filed under this section
until 20 days after the complaint is unsealed and served upon the
defendant pursuant to Rule 4 of the Federal Rules of Civil
Procedure.
(4) Before the expiration of the 60-day period or any extensions
obtained under paragraph (3), the Government shall -
(A) proceed with the action, in which case the action shall be
conducted by the Government; or
(B) notify the court that it declines to take over the action,
in which case the person bringing the action shall have the right
to conduct the action.
(5) When a person brings an action under this subsection, no
person other than the Government may intervene or bring a related
action based on the facts underlying the pending action.
(c) Rights of the Parties to Qui Tam Actions. - (1) If the
Government proceeds with the action, it shall have the primary
responsibility for prosecuting the action, and shall not be bound
by an act of the person bringing the action. Such person shall
have the right to continue as a party to the action, subject to the
limitations set forth in paragraph (2).
(2)(A) The Government may dismiss the action notwithstanding the
objections of the person initiating the action if the person has
been notified by the Government of the filing of the motion and the
court has provided the person with an opportunity for a hearing on
the motion.
(B) The Government may settle the action with the defendant
notwithstanding the objections of the person initiating the action
if the court determines, after a hearing, that the proposed
settlement is fair, adequate, and reasonable under all the
circumstances. Upon a showing of good cause, such hearing may be
held in camera.
(C) Upon a showing by the Government that unrestricted
participation during the course of the litigation by the person
initiating the action would interfere with or unduly delay the
Government's prosecution of the case, or would be repetitious,
irrelevant, or for purposes of harassment, the court may, in its
discretion, impose limitations on the person's participation, such
as -
(i) limiting the number of witnesses the person may call;
(ii) limiting the length of the testimony of such witnesses;
(iii) limiting the person's cross-examination of witnesses; or
(iv) otherwise limiting the participation by the person in the
litigation.
(D) Upon a showing by the defendant that unrestricted
participation during the course of the litigation by the person
initiating the action would be for purposes of harassment or would
cause the defendant undue burden or unnecessary expense, the court
may limit the participation by the person in the litigation.
(3) If the Government elects not to proceed with the action, the
person who initiated the action shall have the right to conduct the
action. If the Government so requests, it shall be served with
copies of all pleadings filed in the action and shall be supplied
with copies of all deposition transcripts (at the Government's
expense). When a person proceeds with the action, the court,
without limiting the status and rights of the person initiating the
action, may nevertheless permit the Government to intervene at a
later date upon a showing of good cause.
(4) Whether or not the Government proceeds with the action, upon
a showing by the Government that certain actions of discovery by
the person initiating the action would interfere with the
Government's investigation or prosecution of a criminal or civil
matter arising out of the same facts, the court may stay such
discovery for a period of not more than 60 days. Such a showing
shall be conducted in camera. The court may extend the 60-day
period upon a further showing in camera that the Government has
pursued the criminal or civil investigation or proceedings with
reasonable diligence and any proposed discovery in the civil action
will interfere with the ongoing criminal or civil investigation or
proceedings.
(5) Notwithstanding subsection (b), the Government may elect to
pursue its claim through any alternate remedy available to the
Government, including any administrative proceeding to determine a
civil money penalty. If any such alternate remedy is pursued in
another proceeding, the person initiating the action shall have the
same rights in such proceeding as such person would have had if the
action had continued under this section. Any finding of fact or
conclusion of law made in such other proceeding that has become
final shall be conclusive on all parties to an action under this
section. For purposes of the preceding sentence, a finding or
conclusion is final if it has been finally determined on appeal to
the appropriate court of the United States, if all time for filing
such an appeal with respect to the finding or conclusion has
expired, or if the finding or conclusion is not subject to judicial
review.
(d) Award to Qui Tam Plaintiff. - (1) If the Government proceeds
with an action brought by a person under subsection (b), such
person shall, subject to the second sentence of this paragraph,
receive at least 15 percent but not more than 25 percent of the
proceeds of the action or settlement of the claim, depending upon
the extent to which the person substantially contributed to the
prosecution of the action. Where the action is one which the court
finds to be based primarily on disclosures of specific information
(other than information provided by the person bringing the action)
relating to allegations or transactions in a criminal, civil, or
administrative hearing, in a congressional, administrative, or
Government (FOOTNOTE 1) Accounting Office report, hearing, audit,
or investigation, or from the news media, the court may award such
sums as it considers appropriate, but in no case more than 10
percent of the proceeds, taking into account the significance of
the information and the role of the person bringing the action in
advancing the case to litigation. Any payment to a person under
the first or second sentence of this paragraph shall be made from
the proceeds. Any such person shall also receive an amount for
reasonable expenses which the court finds to have been necessarily
incurred, plus reasonable attorneys' fees and costs. All such
expenses, fees, and costs shall be awarded against the defendant.
(FOOTNOTE 1) So in original. Probably should be ''General''.
(2) If the Government does not proceed with an action under this
section, the person bringing the action or settling the claim shall
receive an amount which the court decides is reasonable for
collecting the civil penalty and damages. The amount shall be not
less than 25 percent and not more than 30 percent of the proceeds
of the action or settlement and shall be paid out of such
proceeds. Such person shall also receive an amount for reasonable
expenses which the court finds to have been necessarily incurred,
plus reasonable attorneys' fees and costs. All such expenses,
fees, and costs shall be awarded against the defendant.
(3) Whether or not the Government proceeds with the action, if
the court finds that the action was brought by a person who planned
and initiated the violation of section 3729 upon which the action
was brought, then the court may, to the extent the court considers
appropriate, reduce the share of the proceeds of the action which
the person would otherwise receive under paragraph (1) or (2) of
this subsection, taking into account the role of that person in
advancing the case to litigation and any relevant circumstances
pertaining to the violation. If the person bringing the action is
convicted of criminal conduct arising from his or her role in the
violation of section 3729, that person shall be dismissed from the
civil action and shall not receive any share of the proceeds of the
action. Such dismissal shall not prejudice the right of the United
States to continue the action, represented by the Department of
Justice.
(4) If the Government does not proceed with the action and the
person bringing the action conducts the action, the court may award
to the defendant its reasonable attorneys' fees and expenses if the
defendant prevails in the action and the court finds that the claim
of the person bringing the action was clearly frivolous, clearly
vexatious, or brought primarily for purposes of harassment.
(e) Certain Actions Barred. - (1) No court shall have
jurisdiction over an action brought by a former or present member
of the armed forces under subsection (b) of this section against a
member of the armed forces arising out of such person's service in
the armed forces.
(2)(A) No court shall have jurisdiction over an action brought
under subsection (b) against a Member of Congress, a member of the
judiciary, or a senior executive branch official if the action is
based on evidence or information known to the Government when the
action was brought.
(B) For purposes of this paragraph, ''senior executive branch
official'' means any officer or employee listed in paragraphs (1)
through (8) of section 101(f) of the Ethics in Government Act of
1978 (5 U.S.C. App.).
(3) In no event may a person bring an action under subsection (b)
which is based upon allegations or transactions which are the
subject of a civil suit or an administrative civil money penalty
proceeding in which the Government is already a party.
(4)(A) No court shall have jurisdiction over an action under this
section based upon the public disclosure of allegations or
transactions in a criminal, civil, or administrative hearing, in a
congressional, administrative, or Government (FOOTNOTE 2)
Accounting Office report, hearing, audit, or investigation, or from
the news media, unless the action is brought by the Attorney
General or the person bringing the action is an original source of
the information.
(FOOTNOTE 2) So in original. Probably should be ''General''.
(B) For purposes of this paragraph, ''original source'' means an
individual who has direct and independent knowledge of the
information on which the allegations are based and has voluntarily
provided the information to the Government before filing an action
under this section which is based on the information.
(f) Government Not Liable for Certain Expenses. - The Government
is not liable for expenses which a person incurs in bringing an
action under this section.
(g) Fees and Expenses to Prevailing Defendant. - In civil actions
brought under this section by the United States, the provisions of
section 2412(d) of title 28 shall apply.
(h) Any employee who is discharged, demoted, suspended,
threatened, harassed, or in any other manner discriminated against
in the terms and conditions of employment by his or her employer
because of lawful acts done by the employee on behalf of the
employee or others in furtherance of an action under this section,
including investigation for, initiation of, testimony for, or
assistance in an action filed or to be filed under this section,
shall be entitled to all relief necessary to make the employee
whole. Such relief shall include reinstatement with the same
seniority status such employee would have had but for the
discrimination, 2 times the amount of back pay, interest on the
back pay, and compensation for any special damages sustained as a
result of the discrimination, including litigation costs and
reasonable attorneys' fees. An employee may bring an action in the
appropriate district court of the United States for the relief
provided in this subsection.
-SOURCE-
(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 978; Pub. L. 99-562, Sec.
3, 4, Oct. 27, 1986, 100 Stat. 3154, 3157; Pub. L. 100-700, Sec. 9,
Nov. 19, 1988, 102 Stat. 4638; Pub. L. 101-280, Sec. 10(a), May 4,
1990, 104 Stat. 162; Pub. L. 103-272, Sec. 4(f)(1)(P), July 5,
1994, 108 Stat. 1362.)
-MISC1-
Historical and Revision Notes
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Revised Section Source (U.S. Code) Source (Statutes at
Large)
---------------------------------------------------------------------
3730(a) 31:233. R.S. Sec. 3492.
3730(b)(1) 31:232(A), (B)(less R.S. Sec. 3491(A)-
words between 3d (E); restated Dec.
and 4th commas). 23, 1943, ch. 377,
Sec. 1, 57 Stat.
608; June 11, 1960,
Pub. L. 86-507,
Sec. 1(28), (29),
74 Stat. 202.
3730(b)(2) 31:232(C)(1st-3d
sentences, 5th
sentence proviso).
3730(b)(3) 31:232(C)(4th
sentence, 5th
sentence less
proviso).
3730(b)(4) 31:232(C)(last
sentence), (D).
3730(c)(1) 31:232(E)(1).
3730(c)(2) 31:232(E)(2)(less
proviso).
3730(d) 31:232(B)(words
between 3d and 4th
commas),
(E)(2)(proviso).
-------------------------------
In the section, the words ''civil action'' are substituted for
''suit'' for consistency in the revised title and with other titles
of the United States Code.
In subsection (a), the words ''Attorney General'' are substituted
for ''several district attorneys of the United States (subsequently
changed to 'United States attorneys' because of section 1 of the
Act of June 25, 1948 (ch. 646, 62 Stat. 909)) for the respective
districts, for the District of Columbia, and for the several
Territories'' because of 28:509. The words ''by persons liable to
such suit'' are omitted as surplus. The words ''and found within
their respective districts or Territories'' are omitted because of
the restatement. The words ''If the Attorney General finds that a
person has violated or is violating section 3729, the Attorney
General may bring a civil action under this section against the
person'' are substituted for ''and to cause them to be proceeded
against in due form of law for the recovery of such forfeiture and
damages'' for clarity and consistency. The words ''as the district
judge may order'' are omitted as surplus. The words ''of the
Attorney General'' are substituted for ''the person bringing the
suit'' for consistency in the section.
In subsection (b)(1), the words ''Except as hereinafter
provided'' are omitted as unnecessary. The words ''for a violation
of section 3729 of this title'' are added because of the
restatement. The words ''and carried on'', ''several'' and ''full
power and'' are omitted as surplus. The words ''of the action''
are substituted for ''to hear, try, and determine such suit'' to
eliminate unnecessary words. The words ''Trial is in the judicial
district within whose jurisdictional limits the person charged with
a violation is found or the violation occurs'' are substituted for
''within whose jurisdictional limits the person doing or committing
such act shall be found, shall wheresoever such act may have been
done or committed'' for consistency in the revised title and with
other titles of the Code. The words ''withdrawn or'' and ''judge of
the'' are omitted as surplus. The words ''Attorney General'' are
substituted for ''district attorney (subsequently changed to
'United States attorneys' because of section 1 of the Act of June
25, 1948 (ch. 646, 62 Stat. 909)), first filed in the case''
because of 28:509.
In subsection (b)(2), before clause (A), the words ''bill of'',
''Whenever any such suit shall be brought by any person under
clause (B) of this section'' and ''to the effective prosecution of
such suit or'' are omitted as surplus. The words ''served on the
Government under rule 4 of the Federal Rules of Civil Procedure (28
App. U.S.C.)'' are substituted for ''notice . . . shall be given to
the United States by serving upon the United States Attorney for
the district in which such suit shall have been brought . . . and
by sending, by registered mail, or by certified mail, to the
Attorney General of the United States at Washington, District of
Columbia'' because of 28:509 and to eliminate unnecessary words.
The words ''proceed with the action'' are added for clarity.
Clause (A) is substituted for ''shall fail, or decline in writing
to the court, during said period of sixty days to enter any such
suit'' for clarity and consistency. In clause (B), the words ''a
period of'' and ''therein'' are omitted as surplus.
In subsection (b)(3), the words ''within said period'' are
omitted as surplus. The words ''proceeds with the action'' are
substituted for ''shall enter appearance in such suit'' for
consistency. The words ''In carrying on such suit'' and ''and may
proceed in all respects as if it were instituting the suit'' are
omitted as surplus.
In subsection (b)(4), the words ''Unless the Government proceeds
with the action'' are added because of the restatement. The words
''shall dismiss an action brought by the person on discovering''
are substituted for ''shall have no jurisdiction to proceed with
any such suit . . . or pending suit . . . whenever it shall be made
to appear that'' to eliminate unnecessary words. The words ''or
any agency, officer, or employee thereof'' are omitted as
unnecessary. The text of 31:232(C)(last sentence proviso) and (D)
is omitted as executed.
In subsection (c), the words ''herein provided'', ''fair and . .
. compensation to such person'', and ''involved therein, which
shall be collected'' are omitted as surplus.
In subsection (c)(2), the words ''whether heretofore or hereafter
brought'' are omitted as unnecessary. The words ''bringing the
action or settling the claim'' are substituted for ''who brought
such suit and prosecuted it to final judgment, or to settlement''
for clarity and consistency. The words ''as provided in clause (B)
of this section'' are omitted as unnecessary. The words ''the
civil penalty'' are substituted for ''forfeiture'' for clarity and
consistency. The words ''to his own use'', ''the court may'', and
''to be allowed and taxed according to any provision of law or rule
of court in force, or that shall be in force in suits between
private parties in said court'' are omitted as surplus.
Subsection (d) is substituted for 31:232(B)(words between 3d and
4th commas) and (E)(2)(proviso) to eliminate unnecessary words.
-REFTEXT-
REFERENCES IN TEXT
The Federal Rules of Civil Procedure, referred to in subsec.
(b)(2), (3), are set out in the Appendix to Title 28, Judiciary and
Judicial Procedure.
Section 101(f) of the Ethics in Government Act of 1978, referred
to in subsec. (e)(2)(B), is section 101(f) of Pub. L. 95-521, title
I, Oct. 26, 1978, 92 Stat. 1824, as amended, which was set out in
the Appendix to Title 5, Government Organization and Employees.
-MISC2-
AMENDMENTS
1994 - Subsec. (e)(2)(B). Pub. L. 103-272 substituted
''paragraphs (1) through (8)'' for ''section paragraphs (1) through
(8)''.
1990 - Subsec. (e)(2)(B). Pub. L. 101-280 substituted
''paragraphs (1) through (8) of section 101(f)'' for ''201(f)''.
1988 - Subsec. (c)(4). Pub. L. 100-700, Sec. 9(b)(1), which
directed amendment of section 3730 of title 28 by substituting
''with the action'' for ''with action'' in subsec. (c)(4), was
executed to subsec. (c)(4) of this section as the probable intent
of Congress.
Subsec. (d)(3). Pub. L. 100-700, Sec. 9(a)(1), (2), added par.
(3). Former par. (3) redesignated (4).
Subsec. (d)(4). Pub. L. 100-700, Sec. 9(b)(2), which directed
amendment of section 3730 of title 28 by substituting ''claim of
the person bringing the action'' for ''claim of the person bringing
the actions'' in subsec. (d)(4), was executed to subsec. (d)(4) of
this section as the probable intent of Congress.
Pub. L. 100-700, Sec. 9(a)(1), redesignated former par. (3) as
(4).
1986 - Pub. L. 99-562, Sec. 3, amended section generally,
revising and expanding provisions of subsecs. (a) to (c), adding
subsecs. (d) and (e), redesignating former subsec. (d) as (f), and
adding subsec. (g).
Subsec. (h). Pub. L. 99-562, Sec. 4, added subsec. (h).
EFFECTIVE DATE OF 1990 AMENDMENT
Section 10(c) of Pub. L. 101-280 provided that: ''The amendments
made by subsections (a) and (b) (amending this section and section
2397a of Title 10, Armed Forces) shall take effect on January 1,
1991.''
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 3731, 3732, 3733 of this
title; title 15 sections 637, 657a; title 42 section 1395i.
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