Legal Definitions - Popular action

A Popular action, also known as a qui tam action, is a type of lawsuit initiated by a private citizen on behalf of the government. In such an action, the citizen, often referred to as a "relator" or "whistleblower," alleges that an individual or organization has defrauded or otherwise violated a law against the government. If the lawsuit is successful, the government recovers funds, and the private citizen who brought the action receives a portion of that recovery as a reward for exposing the wrongdoing. This legal mechanism encourages private citizens to report fraud and helps enforce laws designed to protect public funds and resources.

Here are some examples illustrating how a popular action might apply:

• Healthcare Billing Fraud: A former billing manager at a large pharmaceutical company discovers that the company has been systematically overcharging government healthcare programs, such as Medicare and Medicaid, for prescription drugs by misrepresenting their true cost. The manager decides to file a popular action, providing detailed evidence of the fraudulent billing practices. If the government intervenes in the case and a settlement or judgment is reached against the pharmaceutical company, the government recovers the overpaid funds, and the former billing manager receives a percentage of that recovery for bringing the fraud to light.

• Defense Contractor Misrepresentation: An engineer working for a company that manufactures specialized components for military aircraft discovers that the company is knowingly using substandard materials and falsifying quality control reports to meet contract specifications with the Department of Defense. This not only endangers military personnel but also defrauds the government by delivering products that do not meet the agreed-upon standards. The engineer initiates a popular action, providing internal documents and expert testimony. Should the lawsuit result in a recovery for the government, the engineer would be compensated for exposing the company's fraudulent practices.

• Government Grant Misuse: A financial analyst working for a non-profit organization discovers that the organization, which receives substantial federal grants for environmental research, is fabricating research data and misrepresenting its project progress to continue receiving funding from a government agency. The analyst files a popular action, alleging that the organization is defrauding the federal government by misusing public funds and providing false information. If the action is successful, the government recovers the misused grant money, and the analyst receives a share of the recovered funds for their role in uncovering the fraud.