31 USC 3730(b)(2): Records pertaining to financial false claims

          
Sec. 3730. Civil actions for false claims

    (a) Responsibilities of the Attorney General.--The Attorney General 
diligently shall investigate a violation under section 3729. If the 
Attorney General finds that a person has violated or is violating 
section 3729, the Attorney General may bring a civil action under this 
section against the person.


    (b) Actions by Private Persons.--(1) A person may bring a civil 
action for a violation of section 3729 for the person and for the United 
States Government. The action shall be brought in the name of the 
Government. The action may be dismissed only if the court and the 
Attorney General give written consent to the dismissal and their reasons 
for consenting.

        

            
 
          
    (2) A copy of the complaint and written disclosure of substantially 
all material evidence and information the person possesses shall be 
served on the Government pursuant to Rule 4(d)(4) of the Federal Rules 
of Civil Procedure. The complaint shall be filed in camera, shall remain 
under seal for at least 60 days, and shall not be served on the 
defendant until the court so orders. The Government may elect to 
intervene and proceed with the action within 60 days after it receives 
both the complaint and the material evidence and information.
    (3) The Government may, for good cause shown, move the court for 
extensions of the time during which the complaint remains under
seal under paragraph (2). Any such motions may be supported by 
affidavits or other submissions in camera. The defendant shall not be 
required to respond to any complaint filed under this section until 20 
days after the complaint is unsealed and served upon the defendant 
pursuant to Rule 4 of the Federal Rules of Civil Procedure.
    (4) Before the expiration of the 60-day period or any extensions 
obtained under paragraph (3), the Government shall--
        (A) proceed with the action, in which case the action shall be 
    conducted by the Government; or
        (B) notify the court that it declines to take over the action, 
    in which case the person bringing the action shall have the right to 
    conduct the action.

    (5) When a person brings an action under this subsection, no person 
other than the Government may intervene or bring a related action based 
on the facts underlying the pending action.
    (c) Rights of the Parties to Qui Tam Actions.--(1) If the Government 
proceeds with the action, it shall have the primary responsibility for 
prosecuting the action, and shall not be bound by an act of the person 
bringing the action. Such person shall have the right to continue as a 
party to the action, subject to the limitations set forth in paragraph 
(2).
    (2)(A) The Government may dismiss the action notwithstanding the 
objections of the person initiating the action if the person has been 
notified by the Government of the filing of the motion and the court has 
provided the person with an opportunity for a hearing on the motion.
    (B) The Government may settle the action with the defendant 
notwithstanding the objections of the person initiating the action if 
the court determines, after a hearing, that the proposed settlement is 
fair, adequate, and reasonable under all the circumstances. Upon a 
showing of good cause, such hearing may be held in camera.
    (C) Upon a showing by the Government that unrestricted participation 
during the course of the litigation by the person initiating the action 
would interfere with or unduly delay the Government's prosecution of the 
case, or would be repetitious, irrelevant, or for purposes of 
harassment, the court may, in its discretion, impose limitations on the 
person's participation, such as--
        (i) limiting the number of witnesses the person may call;
        (ii) limiting the length of the testimony of such witnesses;
        (iii) limiting the person's cross-examination of witnesses; or
        (iv) otherwise limiting the participation by the person in the 
    litigation.

    (D) Upon a showing by the defendant that unrestricted participation 
during the course of the litigation by the person initiating the action 
would be for purposes of harassment or would cause the defendant undue 
burden or unnecessary expense, the court may limit the participation by 
the person in the litigation.
    (3) If the Government elects not to proceed with the action, the 
person who initiated the action shall have the right to conduct the 
action. If the Government so requests, it shall be served with copies of 
all pleadings filed in the action and shall be supplied with copies of 
all deposition transcripts (at the Government's expense). When a person 
proceeds with the action, the court, without limiting the status and 
rights of the person initiating the action, may nevertheless permit the 
Government to intervene at a later date upon a showing of good cause.
    (4) Whether or not the Government proceeds with the action, upon a 
showing by the Government that certain actions of discovery by the 
person initiating the action would interfere with the Government's 
investigation or prosecution of a criminal or civil matter arising out 
of the same facts, the court may stay such discovery for a period of not 
more than 60 days. Such a showing shall be conducted in camera. The 
court may extend the 60-day period upon a further showing in camera that 
the Government has pursued the criminal or civil investigation or 
proceedings with reasonable diligence and any proposed discovery in the 
civil action will interfere with the ongoing criminal or civil 
investigation or proceedings.
    (5) Notwithstanding subsection (b), the Government may elect to 
pursue its claim through any alternate remedy available to the 
Government, including any administrative proceeding to determine a civil 
money penalty. If any such alternate remedy is pursued in another 
proceeding, the person initiating the action shall have the same rights 
in such proceeding as such person would have had if the action had 
continued under this section. Any finding of fact or conclusion of law 
made in such other proceeding that has become final shall be conclusive 
on all parties to an action under this section. For purposes of the 
preceding sentence, a finding or conclusion is final if it has been 
finally determined on appeal to the appropriate court of the United 
States, if all time for filing such an appeal with respect to the 
finding or conclusion has expired, or if the finding or conclusion is 
not subject to judicial review.
    (d) Award to Qui Tam Plaintiff.--(1) If the Government proceeds with 
an action brought by a person under subsection (b), such person shall, 
subject to the second sentence of this paragraph, receive at least 15 
percent but not more than 25 percent of the proceeds of the action or 
settlement of the claim, depending upon the extent to which the person 
substantially contributed to the prosecution of the action. Where the 
action is one which the court finds to be based primarily on disclosures 
of specific information (other than information provided by the person 
bringing the action) relating to allegations or transactions in a 
criminal, civil, or administrative hearing, in a congressional, 
administrative, or Government \1\ Accounting Office report, hearing, 
audit, or investigation, or from the news media, the court may award 
such sums as it considers appropriate, but in no case more than 10 
percent of the proceeds, taking into account the significance of the 
information and the role of the person bringing the action in advancing 
the case to litigation. Any payment to a person
under the first or second sentence of this paragraph shall be made from 
the proceeds. Any such person shall also receive an amount for 
reasonable expenses which the court finds to have been necessarily 
incurred, plus reasonable attorneys' fees and costs. All such expenses, 
fees, and costs shall be awarded against the defendant.
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    \1\ So in original. Probably should be ``General''.
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    (2) If the Government does not proceed with an action under this 
section, the person bringing the action or settling the claim shall 
receive an amount which the court decides is reasonable for collecting 
the civil penalty and damages. The amount shall be not less than 25 
percent and not more than 30 percent of the proceeds of the action or 
settlement and shall be paid out of such proceeds. Such person shall 
also receive an amount for reasonable expenses which the court finds to 
have been necessarily incurred, plus reasonable attorneys' fees and 
costs. All such expenses, fees, and costs shall be awarded against the 
defendant.
    (3) Whether or not the Government proceeds with the action, if the 
court finds that the action was brought by a person who planned and 
initiated the violation of section 3729 upon which the action was 
brought, then the court may, to the extent the court considers 
appropriate, reduce the share of the proceeds of the action which the 
person would otherwise receive under paragraph (1) or (2) of this 
subsection, taking into account the role of that person in advancing the 
case to litigation and any relevant circumstances pertaining to the 
violation. If the person bringing the action is convicted of criminal 
conduct arising from his or her role in the violation of section 3729, 
that person shall be dismissed from the civil action and shall not 
receive any share of the proceeds of the action. Such dismissal shall 
not prejudice the right of the United States to continue the action, 
represented by the Department of Justice.
    (4) If the Government does not proceed with the action and the 
person bringing the action conducts the action, the court may award to 
the defendant its reasonable attorneys' fees and expenses if the 
defendant prevails in the action and the court finds that the claim of 
the person bringing the action was clearly frivolous, clearly vexatious, 
or brought primarily for purposes of harassment.
    (e) Certain Actions Barred.--(1) No court shall have jurisdiction 
over an action brought by a former or present member of the armed forces 
under subsection (b) of this section against a member of the armed 
forces arising out of such person's service in the armed forces.
    (2)(A) No court shall have jurisdiction over an action brought under 
subsection (b) against a Member of Congress, a member of the judiciary, 
or a senior executive branch official if the action is based on evidence 
or information known to the Government when the action was brought.
    (B) For purposes of this paragraph, ``senior executive branch 
official'' means any officer or employee listed in paragraphs (1) 
through (8) of section 101(f) of the Ethics in Government Act of 1978 (5 
U.S.C. App.).
    (3) In no event may a person bring an action under subsection (b) 
which is based upon allegations or transactions which are the subject of 
a civil suit or an administrative civil money penalty proceeding in 
which the Government is already a party.
    (4)(A) No court shall have jurisdiction over an action under this 
section based upon the public disclosure of allegations or transactions 
in a criminal, civil, or administrative hearing, in a congressional, 
administrative, or Government \2\ Accounting Office report, hearing, 
audit, or investigation, or from the news media, unless the action is 
brought by the Attorney General or the person bringing the action is an 
original source of the information.
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    \2\ So in original. Probably should be ``General''.
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    (B) For purposes of this paragraph, ``original source'' means an 
individual who has direct and independent knowledge of the information 
on which the allegations are based and has voluntarily provided the 
information to the Government before filing an action under this section 
which is based on the information.
    (f) Government Not Liable for Certain Expenses.--The Government is 
not liable for expenses which a person incurs in bringing an action 
under this section.
    (g) Fees and Expenses to Prevailing Defendant.--In civil actions 
brought under this section by the United States, the provisions of 
section 2412(d) of title 28 shall apply.
    (h) Any employee who is discharged, demoted, suspended, threatened, 
harassed, or in any other manner discriminated against in the terms and 
conditions of employment by his or her employer because of lawful acts 
done by the employee on behalf of the employee or others in furtherance 
of an action under this section, including investigation for, initiation 
of, testimony for, or assistance in an action filed or to be filed under 
this section, shall be entitled to all relief necessary to make the 
employee whole. Such relief shall include reinstatement with the same 
seniority status such employee would have had but for the 
discrimination, 2 times the amount of back pay, interest on the back 
pay, and compensation for any special damages sustained as a result of 
the discrimination, including litigation costs and reasonable attorneys' 
fees. An employee may bring an action in the appropriate district court 
of the United States for the relief provided in this subsection.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 978; Pub. L. 99-562, 
Secs. 3, 4, Oct. 27, 1986, 100 Stat. 3154, 3157; Pub. L. 100-700, 
Sec. 9, Nov. 19, 1988, 102 Stat. 4638; Pub. L. 101-280, Sec. 10(a), May 
4, 1990, 104 Stat. 162; Pub. L. 103-272, Sec. 4(f)(1)(P), July 5, 1994, 
108 Stat. 1362.)

                                          Historical and Revision Notes
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           Revised Section                   Source (U.S. Code)                Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
3730(a)..............................  31:233.                         R.S. Sec.  3492.
3730(b)(1)...........................  31:232(A), (B)(less words       R.S. Sec.  3491(A)-(E); restated Dec. 23,
                                        between 3d and 4th commas).     1943, ch. 377, Sec.  1, 57 Stat. 608;
                                                                        June 11, 1960, Pub. L. 86-507, Sec.
                                                                        1(28), (29), 74 Stat. 202.
3730(b)(2)...........................  31:232(C)(1st-3d sentences,
                                        5th sentence proviso).
3730(b)(3)...........................  31:232(C)(4th sentence, 5th
                                        sentence less proviso).
3730(b)(4)...........................  31:232(C)(last sentence), (D).
3730(c)(1)...........................  31:232(E)(1).
3730(c)(2)...........................  31:232(E)(2)(less proviso).
3730(d)..............................  31:232(B)(words between 3d and
                                        4th commas), (E)(2)(proviso).
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    In the section, the words ``civil action'' are substituted for 
``suit'' for consistency in the revised title and with other titles of 
the United States Code.
    In subsection (a), the words ``Attorney General'' are substituted 
for ``several district attorneys of the United States [subsequently 
changed to `United States attorneys' because of section 1 of the Act of 
June 25, 1948 (ch. 646, 62 Stat. 909)] for the respective districts, for 
the District of Columbia, and for the several Territories'' because of 
28:509. The words ``by persons liable to such suit'' are omitted as 
surplus. The words ``and found within their respective districts or 
Territories'' are omitted because of the restatement. The words ``If the 
Attorney General finds that a person has violated or is violating 
section 3729, the Attorney General may bring a civil action under this 
section against the person'' are substituted for ``and to cause them to 
be proceeded against in due form of law for the recovery of such 
forfeiture and damages'' for clarity and consistency. The words ``as the 
district judge may order'' are omitted as surplus. The words ``of the 
Attorney General'' are substituted for ``the person bringing the suit'' 
for consistency in the section.
    In subsection (b)(1), the words ``Except as hereinafter provided'' 
are omitted as unnecessary. The words ``for a violation of section 3729 
of this title'' are added because of the restatement. The words ``and 
carried on'', ``several'' and ``full power and'' are omitted as surplus. 
The words ``of the action'' are substituted for ``to hear, try, and 
determine such suit'' to eliminate unnecessary words. The words ``Trial 
is in the judicial district within whose jurisdictional limits the 
person charged with a violation is found or the violation occurs'' are 
substituted for ``within whose jurisdictional limits the person doing or 
committing such act shall be found, shall wheresoever such act may have 
been done or committed'' for consistency in the revised title and with 
other titles of the Code. The words ``withdrawn or'' and ``judge of 
the'' are omitted as surplus. The words ``Attorney General'' are 
substituted for ``district attorney [subsequently changed to `United 
States attorneys' because of section 1 of the Act of June 25, 1948 (ch. 
646, 62 Stat. 909)], first filed in the case'' because of 28:509.
    In subsection (b)(2), before clause (A), the words ``bill of'', 
``Whenever any such suit shall be brought by any person under clause (B) 
of this section'' and ``to the effective prosecution of such suit or'' 
are omitted as surplus. The words ``served on the Government under rule 
4 of the Federal Rules of Civil Procedure (28 App. U.S.C.)'' are 
substituted for ``notice . . . shall be given to the United States by 
serving upon the United States Attorney for the district in which such 
suit shall have been brought . . . and by sending, by registered mail, 
or by certified mail, to the Attorney General of the United States at 
Washington, District of Columbia'' because of 28:509 and to eliminate 
unnecessary words. The words ``proceed with the action'' are added for 
clarity. Clause (A) is substituted for ``shall fail, or decline in 
writing to the court, during said period of sixty days to enter any such 
suit'' for clarity and consistency. In clause (B), the words ``a period 
of'' and ``therein'' are omitted as surplus.
    In subsection (b)(3), the words ``within said period'' are omitted 
as surplus. The words ``proceeds with the action'' are substituted for 
``shall enter appearance in such suit'' for consistency. The words ``In 
carrying on such suit'' and ``and may proceed in all respects as if it 
were instituting the suit'' are omitted as surplus.
    In subsection (b)(4), the words ``Unless the Government proceeds 
with the action'' are added because of the restatement. The words 
``shall dismiss an action brought by the person on discovering'' are 
substituted for ``shall have no jurisdiction to proceed with any such 
suit . . . or pending suit . . . whenever it shall be made to appear 
that'' to eliminate unnecessary words. The words ``or any agency, 
officer, or employee thereof'' are omitted as unnecessary. The text of 
31:232(C)(last sentence proviso) and (D) is omitted as executed.
    In subsection (c), the words ``herein provided'', ``fair and . . . 
compensation to such person'', and ``involved therein, which shall be 
collected'' are omitted as surplus.
    In subsection (c)(2), the words ``whether heretofore or hereafter 
brought'' are omitted as unnecessary. The words ``bringing the action or 
settling the claim'' are substituted for ``who brought such suit and 
prosecuted it to final judgment, or to settlement'' for clarity and 
consistency. The words ``as provided in clause (B) of this section'' are 
omitted as unnecessary. The words ``the civil penalty'' are substituted 
for ``forfeiture'' for clarity and consistency. The words ``to his own 
use'', ``the court may'', and ``to be allowed and taxed according to any 
provision of law or rule of court in force, or that shall be in force in 
suits between private parties in said court'' are omitted as surplus.
    Subsection (d) is substituted for 31:232(B)(words between 3d and 4th 
commas) and (E)(2)(proviso) to eliminate unnecessary words.

                       References in Text

    The Federal Rules of Civil Procedure, referred to in subsec. (b)(2), 
(3), are set out in the Appendix to Title 28, Judiciary and Judicial 
Procedure.
    Section 101(f) of the Ethics in Government Act of 1978, referred to 
in subsec. (e)(2)(B), is section 101(f) of Pub. L. 95-521, title I, Oct. 
26, 1978, 92 Stat. 1824, as amended, which was set out in the Appendix 
to Title 5, Government Organization and Employees.
                               Amendments

    1994--Subsec. (e)(2)(B). Pub. L. 103-272 substituted ``paragraphs 
(1) through (8)'' for ``section paragraphs (1) through (8)''.
    1990--Subsec. (e)(2)(B). Pub. L. 101-280 substituted ``paragraphs 
(1) through (8) of section 101(f)'' for ``201(f)''.
    1988--Subsec. (c)(4). Pub. L. 100-700, Sec. 9(b)(1), which directed 
amendment of section 3730 of title 28 by substituting ``with the 
action'' for ``with action'' in subsec. (c)(4), was executed to subsec. 
(c)(4) of this section as the probable intent of Congress.
    Subsec. (d)(3). Pub. L. 100-700, Sec. 9(a)(1), (2), added par. (3). 
Former par. (3) redesignated (4).
    Subsec. (d)(4). Pub. L. 100-700, Sec. 9(b)(2), which directed 
amendment of section 3730 of title 28 by substituting ``claim of the 
person bringing the action'' for ``claim of the person bringing the 
actions'' in subsec. (d)(4), was executed to subsec. (d)(4) of this 
section as the probable intent of Congress.
    Pub. L. 100-700, Sec. 9(a)(1), redesignated former par. (3) as (4).
    1986--Pub. L. 99-562, Sec. 3, amended section generally, revising 
and expanding provisions of subsecs. (a) to (c), adding subsecs. (d) and 
(e), redesignating former subsec. (d) as (f), and adding subsec. (g).
    Subsec. (h). Pub. L. 99-562, Sec. 4, added subsec. (h).
                    Effective Date of 1990 Amendment

    Section 10(c) of Pub. L. 101-280 provided that: ``The amendments 
made by subsections (a) and (b) [amending this section and section 2397a 
of Title 10, Armed Forces] shall take effect on January 1, 1991.''