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Qui Tam Lawsuits Introduce Uncertainty Over Public Authority
Reprinted from: Bloomberg Law | 01/15/2026Cadwalader partner Martin Weinstein authored a Bloomberg Law article exploring renewed constitutional challenges to the False Claims Act’s qui tam provisions — the mechanism allowing private citizens to bring fraud actions on behalf of the United States.
Martin explains that while qui tam suits have helped recover billions in taxpayer funds, courts are reexamining whether the arrangement violates Article II’s separation of powers by permitting private individuals to exercise executive authority without presidential oversight. A recent Wisconsin decision upheld the statute’s constitutionality, rejecting claims that qui tam relators are unappointed federal officers, but other rulings across the country continue to question its alignment with the Constitution.
Tracing the statute’s evolution, from its origins in Civil War–era fraud prevention to its modern role in tackling healthcare and contracting abuses, Martin observes that most qui tam cases now move forward without government intervention, raising questions about oversight and accountability. As he notes, this creates tension between public enforcement objectives and private profit motives.
For companies, he advises, the practical takeaway is clear: exposure under the False Claims Act often begins internally, not with the Department of Justice. Robust compliance systems, credible investigations and prompt responses to whistleblower concerns remain essential to minimizing litigation risk.
Read the full article here.
