Potential Qui Tam Complaint Clause Samples
The Potential Qui Tam Complaint clause addresses situations where a party becomes aware of possible whistleblower actions under the False Claims Act or similar statutes. It typically requires the party to promptly notify the other party if they learn of any facts or circumstances that could lead to a qui tam lawsuit, and may outline steps for cooperation or internal investigation. This clause helps ensure transparency and allows the parties to address potential legal risks proactively, minimizing the chance of surprise litigation and enabling early resolution or compliance measures.
Potential Qui Tam Complaint. On November 9th, 2009, the Company was notified by the Civil Division of the U.S. Department of Justice (“DOJ”) that a “Qui Tam” Complaint (“Complaint”) had been filed under seal by a private individual against a number of health care companies, including the Company. The Complaint is an action to recover damages and civil penalties arising from alleged false or fraudulent claims and statements submitted or caused to be submitted by the defendants to Medicare. The DOJ has not made any decision whether to join the action. The Company believes the allegations in the Complaint are without merit and intends to vigorously defend itself if required to do so.