What incentive does a Relator receive in a Qui Tam suit?

In a Qui Tam suit, a Relator, who is an individual that brings a lawsuit on behalf of the government to expose fraud, is incentivized by the potential to receive a percentage of the recovery obtained as a result of the lawsuit. This typically ranges from 10% to 30% of the total amount recovered from the defendant. This financial incentive serves to motivate individuals to report fraudulent activities that they have knowledge of, especially when it comes to fraud against the government, such as in Medicare or Medicaid cases.

This structure is designed to encourage whistleblowers to come forward with information that might otherwise remain hidden. The ability to earn a percentage of the recovery not only provides motivation to disclose wrongdoing but also helps ensure that those who take the risk to report fraud can receive a just reward for their efforts in assisting with the recovery of government funds.

The options suggesting a flat fee or a salary for legal representation do not align with the incentives created by the Qui Tam provisions, as they do not provide the same level of motivation tied to the success of the case. Additionally, there would not be any financial benefit for a Relator if there were no recovery, which further emphasizes the importance of the percentage structure in place.