Legal Definitions - Relator

A relator is an individual or entity who initiates a lawsuit on behalf of the government, typically under a statute like the False Claims Act, alleging that another party has defrauded the government. This type of legal action is known as a qui tam lawsuit. The relator acts as a whistleblower, providing crucial information and evidence to the government about the alleged fraud. If the lawsuit is successful and the government recovers funds, the relator is entitled to receive a portion of the recovered amount as a reward for their role in exposing the wrongdoing.

Here are some examples illustrating the role of a relator:

• Healthcare Billing Fraud: Imagine a former billing specialist who worked for a large hospital system. She discovers that the hospital has been systematically submitting false claims to Medicare and Medicaid for years, charging for medical procedures that were never performed or exaggerating the severity of patient conditions to receive higher reimbursements. Frustrated by the unethical practices, she decides to file a qui tam lawsuit, providing detailed internal billing records and her personal testimony to the government. In this scenario, the former billing specialist is the relator. She is bringing the fraud to the government's attention and initiating legal action on its behalf. If the government intervenes and successfully recovers millions from the hospital, she would receive a percentage of that recovery.

• Government Contract Misrepresentation: Consider an engineer employed by a company that manufactures specialized equipment for the military. The engineer discovers that the company is knowingly using substandard, cheaper materials than specified in their government contracts, while still billing the Department of Defense for the higher-quality materials. Concerned about the safety implications and the misuse of taxpayer money, the engineer compiles evidence and files a qui tam action. Here, the engineer is the relator. By exposing the company's fraudulent practices in fulfilling its government contracts, the engineer is acting on behalf of the United States government. Should the lawsuit lead to a successful recovery of funds from the contractor, the engineer would be compensated with a share of the recovered amount.