N.M. Stat. § 27-14-9 (2026)

A. If the department proceeds with an action brought by a person pursuant to the
Medicaid False Claims Act, the person shall, subject to the limitations in this subsection,
receive at least fifteen percent but not more than twenty-five 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 that
the court finds to be based primarily on disclosures of specific information other than
information provided by the party bringing the action relating to allegations or
transactions in a criminal, civil or administrative hearing or from the news media, the
court shall award a sum as it considers appropriate; provided that the sum does not
exceed ten percent of the proceeds and takes into account the significance of the
information and the role of the person bringing the action in advancing the case to
litigation. A payment to a person pursuant to this subsection shall be made from the
proceeds. The person shall also receive an amount for reasonable expenses that the
court finds to have been necessarily incurred, plus reasonable attorney fees and costs.
In determining the amount of reasonable attorney fees and costs, the court shall
consider whether such fees and costs were necessary to the prosecution of the action,
were incurred for activities that were duplicative of the activities of the department in
prosecuting the case or were repetitious, irrelevant or for purposes of harassment or
caused the defendant undue burden or unnecessary expense. All such expenses, fees
and costs shall be awarded against the defendant.

    B. If the department does not proceed with an action pursuant to the Medicaid False
Claims Act, the person bringing the action or settling the claim shall receive an amount
that the court decides is reasonable for collecting the civil recovery and damages
recoverable by the state. The amount shall be not less than twenty-five percent and not
more than thirty percent of the proceeds of the action or settlement and shall be paid
out of such proceeds. The person shall also receive an amount for reasonable
expenses that the court finds to have been necessarily incurred, plus reasonable
attorney fees and costs. In determining the amount of reasonable attorney fees and
costs, the court shall consider whether such fees and costs were necessary to the
prosecution of the action, were incurred for activities, which were repetitious, irrelevant
or for purposes of harassment or caused the defendant undue burden or unnecessary
expense. All such expenses, fees and costs shall be awarded against the defendant.

    C. Whether or not the department proceeds with the action, if the court finds that the
action was brought by a person who planned and initiated the violation 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 that the party would otherwise receive
pursuant to Subsection A or B of this section, 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
the person's role in the violation of the Medicaid False Claims Act, 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 state to continue the action
represented by the department. If the department does not proceed with the action and
the person bringing the action conducts the action, the court may award to the
defendant its reasonable attorney fees and costs if the defendant prevails in the action
and the court finds that the claim of the party bringing the action was:

       (1)    filed for an improper purpose;

      (2)    not warranted by existing law or by a nonfrivolous argument for the
extension, modification or reversal of existing law or the establishment of new law; or

       (3)    was based on allegations or factual contentions not supported.

History: Laws 2004, ch. 49, § 9.

                                     ANNOTATIONS

Effective dates. — Laws 2004, ch. 49 contained no effective date provision, but,
pursuant to N.M. Const., art. IV, § 23, was effective May 19, 2004, 90 days after
adjournment of the legislature.