The DOJ has just announced that recoveries from False Claims Act settlements and judgments in fiscal year 2025 exceeded $6.8 billion

Under the False Claims Act, individuals or entities can be held liable for knowingly submitting false or fraudulent claims for payment to the government. The FCA allows private individuals, known as “whistleblowers” or “relators,” to file lawsuits on behalf of the government and share in any monetary recovery. These health care fraud lawsuits are known as qui tam actions. If the government intervenes in the lawsuit and recovers funds, the whistleblower is typically entitled to receive a portion of the recovered amount, often ranging from 15% to 30%. In fiscal year 2023, whistleblowers filed 712 qui tam suits, and this past year the Justice Department reported settlements and judgments exceeding $2.3 billion in these and earlier-filed suits.

“The False Claims Act imposes treble damages and penalties on those who knowingly and falsely claim money from the United States or knowingly fail to pay money owed to the United States. The False Claims Act thus safeguards government programs and operations that provide access to medical care, support our military and first responders, protect American businesses and workers, help build and repair infrastructure, offer disaster and other emergency relief, and provide many other critical services and benefits.”  Settlements and judgments under the False Claims Act exceeded $6.8 billion in the fiscal year ending Sept. 30, 2025, Deputy Attorney General Todd Blanche and Assistant Attorney General Brett A. Shumate, head of the Justice Department’s Civil Division announced in mid January of 2026. Healthcare fraud dominated recoveries, with approximately $5.7 billion of the total $6.8 billion tied to healthcare-related matters that included managed care, prescription drugs, and medically unnecessary services.

In addition, relators also set a new record with 1,297 new qui tam suits filed, breaking FY 2024’s record of 980 qui tam suits and nearly doubling the average number of new qui tam suits during FY 2010 to FY 2023.

it is important for clients to make sure your compliance programs are designed to mitigateFCA risk. Please contact us, we are here to help whether it is the beginning of an investigation, on the eve of trial, at the appellate stage or during settlement discussions.