How to File a Qui Tam Lawsuit Under the Maryland False Claims Act: Timelines and Procedures
To file a Qui Tam lawsuit in Maryland, you must submit your complaint under seal for at least 60 days. The filing fee in a Maryland Circuit Court is typically $165, and you are bound by the strict First-to-File rule.
Understanding the Maryland False Claims Act
If you have discovered that a company or individual is defrauding the state government, you may have the right to file a whistleblower lawsuit. This type of legal action, known as a Qui Tam lawsuit, allows private citizens to sue on behalf of the government and potentially receive a portion of the recovered funds. The process is governed by the Maryland False Claims Act, which is closely modeled after the federal version but specifically targets fraud involving state or county funds, such as Maryland Medicaid fraud, state construction contract fraud, or local public school grants.
It is crucial to understand the difference between state and federal funds. If a defense contractor defrauds the U.S. military, you would file under the 31 U.S.C. § 3729 at a federal courthouse, such as the U.S. District Court for the District of Maryland, Baltimore. However, if a healthcare clinic is overbilling the Maryland Medicaid program, your case falls under state jurisdiction and may be filed in a local court like the Circuit Court for Baltimore City, Baltimore or the Circuit Court for Montgomery County, Rockville. In many healthcare fraud scenarios, both state and federal funds are intermingled, meaning your attorney will often file a joint complaint citing both laws.
Step-by-Step Guide to Filing a Qui Tam Claim
Because these lawsuits are highly complex and involve government agencies, you cannot simply march into a courthouse and file standard public paperwork. The procedures under Md. Code Ann., Gen. Prov. § 8-104 mandate strict secrecy and a precise sequence of events.
Step 1: Internal Investigation and the First-to-File Rule
Before filing, you must ensure you have solid, non-public evidence of the fraud. This usually involves gathering emails, billing records, or internal memos. However, you must act quickly. Both federal and Maryland state laws enforce the 'First-to-File' rule. This means that if another employee or whistleblower files a lawsuit regarding this specific fraud before you do, you are completely barred from participating or collecting a reward. Time is of the essence, and consulting with an attorney immediately is highly recommended.
Step 2: Drafting the Complaint and Filing Under Seal
A Qui Tam complaint is entirely different from a standard civil lawsuit. By law, it must be filed 'in camera' and under seal. This means the lawsuit is kept completely secret from the public, the media, and most importantly, the defendant (your employer or the fraudulent company). When submitting the initial documents, your attorney will include Form CC-DCM-002, Maryland, Circuit Court, Civil Non-Domestic Case Information Report alongside the sealed complaint. The court will lock the file for a mandatory period of 60 days to give the government time to investigate secretly.
Step 3: Serving the Attorney General
Once the case is filed under seal at a court like the Circuit Court for Howard County, Ellicott City, you must formally serve the state. A copy of the complaint and a written disclosure of substantially all material evidence must be delivered to the Office of the Attorney General, Baltimore. If your case involves federal funds, you must also serve the U.S. Department of Justice and the local U.S. Attorney's Office.
Step 4: The Government Intervention Decision
During the 60-day seal period (which the government frequently asks a judge to extend, sometimes for years), state investigators will review your evidence. They will issue subpoenas and conduct interviews. At the end of their investigation, the government will decide whether to 'intervene' (take over the litigation) or 'decline' (step aside). If they intervene, the state handles the heavy lifting in court. Under Md. Code Ann., Gen. Prov. § 8-104, if the governmental entity declines to intervene, the court must dismiss the action before unsealing the complaint, meaning a private whistleblower cannot pursue the Maryland claim alone.
Timelines and the Statute of Limitations
You cannot wait forever to report fraud. Under Md. Code Ann., Gen. Prov. § 8-108, a civil action must be filed within the later of 6 years after the date on which the violation occurred, or 3 years after the date when facts material to the right of action were known or reasonably should have been known by the person initiating the action or the responsible government official, but in no event more than 10 years after the violation was committed. Missing these deadlines will result in your case being dismissed permanently, as seen in complex fraud precedents similar to Cochise Consultancy, Inc. v. United States ex rel. Hunt, 587 U.S. 262 (US Supreme Court 2019).
Frequently Asked Questions (FAQ)
Can I file a Qui Tam lawsuit without a lawyer?
No. Courts generally require whistleblowers (known as relators) to be represented by legal counsel because you are technically representing the interests of the government, not just yourself.
Will my employer find out that I filed the lawsuit?
Initially, no. The lawsuit remains under strict court seal. However, once the seal is lifted by the judge (which happens whether the government intervenes or not), your identity will become public knowledge.
What happens if I signed a confidentiality agreement with my employer?
Generally, non-disclosure agreements (NDAs) cannot legally prevent you from reporting fraud to the government or filing a False Claims Act lawsuit, though you should let your lawyer review the document carefully.
How long do these investigations typically take?
While the initial seal is 60 days, complex healthcare or defense contractor fraud investigations often take 2 to 4 years before the government makes a final decision on intervention.
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