DOJ: $6.8 Billion in False Claims Act Recoveries

The Justice Department announced that settlements and judgments under the False Claims Act reached more than $6.8 billion in fiscal year 2025, marking the highest annual total in the statute’s history. Deputy Attorney General Todd Blanche and Assistant Attorney General Brett A. Shumate, head of the Civil Division, announced the results, which push cumulative recoveries since 1986 past $85 billion.

Record Whistleblower Activity

The year also saw unprecedented whistleblower engagement: 1,297 qui tam lawsuits were filed, surpassing the previous record of 980 set in 2024. The government opened 401 new investigations, and recoveries tied to qui tam suits—both current and previously filed—exceeded $5.3 billion. Under the law’s whistleblower provisions, relators typically receive between 15% and 30% of any recovery.

Health Care Fraud Remains the Dominant Category

Health care fraud again accounted for the bulk of recoveries, with more than $5.7 billion of the total tied to the health care industry. Enforcement focused heavily on three areas: managed care, prescription drugs, and medically unnecessary care. These recoveries benefited Medicare, Medicaid, and TRICARE, and in many cases also triggered additional recoveries for state Medicaid programs.

Other Enforcement Priorities

Beyond health care, the department pursued:

  • Government procurement fraud, including cases involving military contracts, cybersecurity compliance violations by contractors and grantees, and continued recovery of pandemic-relief program losses.
  • Trade and customs fraud, through a newly launched cross-agency Trade Fraud Task Force targeting misrepresentation of goods, country-of-origin fraud, and duty evasion schemes.

Credit for Self-Disclosure and Cooperation

The department emphasized its continued practice of rewarding companies and individuals who self-report misconduct, cooperate with investigations, and implement remedial measures. Several settlements this year reflected reduced penalties tied to such cooperation.

Officials’ Statements

Officials framed the results as evidence of the FCA’s continued power and importance. Deputy Attorney General Blanche called the results proof the law “remains one of the government’s most powerful weapons against fraud,” while Deputy Assistant Attorney General Brenna Jenny credited the Department’s civil servants across U.S. Attorneys’ offices, agency Inspectors General, and other federal and state partners for the results.

Discover more from Nolte Analytics

Subscribe now to keep reading and get access to the full archive.

Continue reading