The Justice Department has increased False Claims Act prosecutions, reflecting a continued focus on healthcare fraud and a new initiative on trade fraud.  DOJ announced the largest annual recovery figure in the FCA’s history — $6.8 billion in settlements and recoveries. 

FCA whistleblowers filed a record number of new cases — 1,297 lawsuits and the government initiated 401 investigations.  Since 1986, DOJ has recovered a total in excess of $85 billion.

DOJ is taking full advantage of the power provisions of the FCA that include treble damages, broad liability coverage, and favorable amendments adopted to increase government leverage.

Health care fraud remained the primary source of FCA settlements.  Approximately $5.7 billion of the total $6.8 billion related to actions against healthcare companies.  Notably, DOJ continued and expanded its success in three major areas: Managed Care, Prescription Drugs, and Medically Unnecessary Care.

One significant case resulted in a $1.6 billion verdict against Janssen stemming from allegations that the company engaged in off-label promotions of HIV/AIDS drugs.  Another major case involved a $948.8 million jury verdict against Omnicare for dispensing drugs without a valid prescription to persons in assisted living and long-term care facilities.

In the areas of procurement, cybersecurity and pandemic fraud, DOJ’s report cited a $428 million settlement with Raytheon which provided false cost and pricing data and double billing in defense contracts.  In addition, resolutions related to cybersecurity fraud tripled in each of the past two years.  This past year, DOJ settled nine separate cybersecurity fraud cases, recovering more than $52 million.  Health New Federal Services, and its parent corporation, Centene Corporation, agreed to pay $11.2 million to resolve allegations that it falsely certified compliance with cybersecurity requirements in contract with DOJ.

DOJ directed resources to combat fraud that evades tariffs and customs duties, launching a cross-agency Trade Fraud Task Force to enhance efforts to prevent trade fraud that deprives the government of vital revenues, threatens critical domestic industries, undermines consumer confidence, and weakens national security. 

In a major settlement, Ceratizit USA agreed to pay $54 million.4 million for failure to pay duties on products imported from China, a record high amount for a customs-related FCA case.

DOJ increased efforts to reward entities and individuals that self-disclose misconduct, demonstrably cooperate in the course of an investigation, and take effective remedial measures. Several settlements over the last year acknowledged such cooperative measures and reflected credits afforded to the defendants in the form of reduced penalties or damage multiples in connection with the resolution.

Whistleblower, or qui tam, actions comprised a significant percentage of the False Claims Act cases that are filed. When a qui tam action is successful, the whistleblower, also known as the relator, typically receives a portion of the recovery ranging between 15% and 30%. The 1,297 qui tam suits filed in fiscal year 2025 breaks the prior record set in 2024 of 980 such cases. This past year, the Justice Department reported settlements and judgments exceeding $5.3 billion in these and earlier-filed qui tam suits.