How to File a Qui Tam Lawsuit Under the Minnesota False Claims Act

If you have discovered that your employer or a contractor is defrauding the state government, you may be in a position to stop it and receive a financial reward. The Minnesota False Claims Act (MFCA) empowers private citizens to sue individuals or companies that submit false claims for state funds. This process, known as a qui tam lawsuit, is a powerful tool to protect taxpayers.

Blowing the whistle can be intimidating. Whether you are reporting Medicaid fraud at a clinic in Minneapolis or a rigged construction contract in St. Paul, understanding the strict legal mechanics of a qui tam claim is crucial. If you are considering taking action, you can find a skilled Minnesota whistleblower attorney in our US Lawyer Directory.

Step-by-Step Guide to Filing a Qui Tam Lawsuit in Minnesota

Filing a qui tam lawsuit is not like a standard civil case. It requires precise adherence to procedures under Minn. Stat. § 15C.01 and related sections. Here is how the process works.

What is a Relator?

Under the MFCA, the private citizen who files the lawsuit is called the 'relator.' You are essentially stepping into the shoes of the government to recover stolen taxpayer funds. To qualify as a relator, you typically must be the 'original source' of the information. This means you have direct, independent knowledge of the fraud-often because you work for the company committing it. If the fraud has already been exposed in the news or public government reports, the public disclosure bar will generally prevent you from filing a claim, as highlighted in the precedent Schindler Elevator Corp. v. United States ex rel. Kirk, 563 U.S. 401 (US Supreme Court 2011).

The First-to-File Rule

Time is of the essence in qui tam litigation due to the 'first-to-file' rule. If multiple employees at your company discover the same fraud, the law only rewards the first person to successfully file a lawsuit. Once a claim is filed, no other relator can intervene or file a separate lawsuit based on the same facts. Therefore, if you suspect ongoing fraud against a Minnesota agency, you must act quickly to secure your rights as the sole relator.

Filing Under Seal in Minnesota Courts

When your attorney files your complaint, they do not serve it on the defendant right away. Instead, they will include a Form CIV117, Minnesota, Judicial Branch, Civil Cover Sheet and file the lawsuit 'under seal' at a state court, such as the Hennepin County District Court, Minneapolis or the Ramsey County District Court, St. Paul. This means the lawsuit is kept completely secret from the public and the defendant. At the same time, your attorney serves a copy of the complaint and a disclosure of all material evidence directly to the Minnesota Attorney General's Office, St. Paul. The seal lasts for at least 60 days, giving the state time to investigate your claims without tipping off the fraudsters.

After their investigation, the Attorney General will decide whether to 'intervene' (take over the litigation). If the state intervenes, they handle the heavy lifting of the lawsuit. If they decline, you and your attorney have the right to pursue the case independently on behalf of Minnesota.

Statute of Limitations for State Contract Fraud

The statute of limitations under the MFCA is strict. Under Minn. Stat. § 15C.11(a), a civil action must be brought within six years after the fraudulent activity occurred, or within three years after the state official charged with responsibility discovers or reasonably should have known the facts, whichever occurs later-but in no event more than ten years after the date the violation was committed. Waiting too long can permanently bar your claim, regardless of how strong your evidence is.

How Much Does it Cost in Minnesota?

Qui tam cases are almost always handled on a contingency fee basis.

• Attorney Fees: You generally pay nothing upfront. If the lawsuit is successful, your attorney takes a percentage (usually 30% to 40%) of your whistleblower reward.
• Relator's Reward: If the state intervenes, the relator is entitled to 15% to 25% of the recovered funds. If the state does not intervene and you win the case, your reward increases to 25% to 30%.
• Court Costs: The defendant is usually ordered to pay reasonable attorney's fees and court costs if they are found liable under the MFCA.

How Long Does the Process Take?

Qui tam lawsuits are marathons, not sprints. While the initial seal is for 60 days, the Minnesota Attorney General often requests multiple extensions from the judge to complete complex financial investigations. It is common for a case to remain under seal for one to two years. Once the seal is lifted and litigation begins, reaching a settlement or trial can take an additional two to four years.

Frequently Asked Questions (FAQ)