California False Claims Act

The California False Claims Act allows whistleblowers who know of violations of the law to file a “qui tam” lawsuit. It has general application, covering many types of fraud against the state, not just healthcare fraud, although tax fraud and workers’ compensation fraud are specifically exempted from the reach of the California False Claims Act.

The terms of the California False Claims Act extend beyond the state to political subdivisions, including cities, counties, assessment districts and other local government entities. “Qui tam” suits may be brought by whistleblowers on behalf of the state or a political subdivision.

A successful whistleblower will receive between 15 and 33 percent of the proceeds in cases where the state intervenes; if the state does not intervene a successful whistleblower will receive between 25 and 50 percent of the proceeds. These amounts may be reduced if the whistleblower planned or initiated the violation.


Read the full text of the law here.