The Standing of Qui Tam Relators under the False Claims Act

The False Claims Act (FCA) is the federal government's chief defense against fraud. The FCA grants a cause of action to the US to sue for civil damages and penalties against any entity knowingly presenting a fraudulent claim to the government. The qui tam provision of the FCA authorizes private individuals to adopt the government's cause of action and to sue on behalf of the US. These qui tam plaintiffs, or "relators," receive a bounty of up to 30% of the damage award or settlement, plus expenses, attorney fees, and the costs of the lawsuit. Lower courts have found the provision constitutional on grounds of the Article II Appointments Clause, separation of powers, and Article III standing, but have offered little analysis of how a qui tam plaintiff can fulfill Article III standing requirements. The adoption of an assignment theory is recommended to allow standing in qui tam suits. Under this theory, qui tam plaintiffs have standing as assignees of the government's injury. Properly limited, the assignment theory gives effect to congressional intent while preserving the integrity of standing doctrine.