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DOJ Reports Record $6.8 Billion in False Claims Act Recoveries for 2025
The Department of Justice announced last week that it recovered a record-breaking $6.8 billion in False Claims Act (FCA) settlements and judgments for fiscal year 2025, more than doubling the previous year’s $3.1 billion figure. The January 16 announcement also revealed a 17 percent increase in new FCA cases, firmly dispelling speculation that white-collar enforcement would diminish under the second Trump administration.
Despite the administration’s February 2025 pause on Foreign Corrupt Practices Act enforcement, which led some legal observers to declare federal white-collar enforcement efforts dead, FCA enforcement has clearly intensified across multiple sectors beyond traditional healthcare fraud, including civil rights violations and trade fraud.
Whistleblowers continue to drive the majority of FCA complaints through qui tam lawsuits, where private citizens file suits on behalf of the United States and share in any recoveries. This trend aligns with the Attorney General’s stated support for qui tam suits during her confirmation hearing last January. Throughout 2025, the DOJ actively encouraged potential whistleblowers to come forward, particularly when launching the Trade Fraud Task Force in August.
The federal government appears increasingly willing to intervene in whistleblower-initiated actions. Recoveries in Department of Defense and Department of War contracting matters where DOJ stepped in surged from $76 million in 2024 to $525 million in 2025. This shift reflects the administration’s focus on ensuring taxpayer dollars aren’t wasted.
Healthcare fraud remains the dominant area for FCA recoveries, accounting for approximately $5.7 billion (84 percent) of the total amount recovered in FY 2025, a significant increase from $1.8 billion the previous year. Three areas received particular attention: managed care, prescription drugs, and unnecessary or substandard care. Prescription drug-related misconduct represented the largest portion of these recoveries, with prosecutors targeting improper dispensing, pricing issues, and illegal kickbacks.
A notable case involved a $948.8 million judgment against CVS and Omnicare for allegedly improperly dispensing prescription medications in assisted living and long-term care facilities.
Department of War contract recoveries saw a dramatic 600 percent increase in 2025, totaling over $600 million. Much of this surge stemmed from allegations involving fraudulent cost and pricing data. Another significant factor was increased scrutiny of contractors’ cybersecurity practices and their obligation to safeguard sensitive government information.
Cybersecurity fraud settlements more than tripled in 2025, reaching over $52 million. This growth reflects the maturation of the DOJ’s Civil-Cyber Fraud Initiative, launched in October 2021 following high-profile breaches like SolarWinds and Colonial Pipeline. As the Department of War undergoes fundamental changes while serving as a key diplomatic tool, FCA enforcement in defense-related business is expected to intensify further.
The administration has also leveraged the FCA to support its international trade priorities, with a particular focus on tariff and customs avoidance. Several cases targeted misrepresentations about imported goods or their country of origin, with special attention to imports from China amid ongoing trade tensions. One significant example was December’s $54.4 million settlement with Ceratizit USA LLC for allegedly failing to pay required duties on imports—the largest customs fraud resolution under the FCA’s “reverse false claim” theory.
The second Trump administration has made it clear that enforcement actions will target conduct that “directly undermines U.S. National interests,” a stance initially announced regarding the Foreign Corrupt Practices Act but now evidently applicable across multiple enforcement areas. This approach was further demonstrated in January 2026 when more than 1,000 firms—roughly 25 percent of all registered participants—were suspended from the 8(a) Business Development Program in an effort to “expose fraud and restore integrity to federal contracting.”
As the administration continues pursuing its America First agenda through FCA enforcement, healthcare and national security will remain focal points, but the DOJ is also likely to utilize the FCA to address other high-priority initiatives in the coming year.
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12 Comments
It’s encouraging to see the DOJ maintaining a robust FCA enforcement program, even as political winds shift. Protecting taxpayer dollars and upholding integrity in government contracting should be a bipartisan priority, especially in critical sectors like mining and energy.
I agree. FCA enforcement serves as an important safeguard against waste, fraud, and abuse, which can have far-reaching consequences for the public. Consistent application of the law, regardless of political affiliations, is crucial.
Interesting to see the Department of Justice achieving record-breaking recoveries under the False Claims Act. This signals a continued focus on combating fraud and misconduct, even across different administrations. It will be worth watching how enforcement unfolds in the mining and energy sectors in the coming years.
Yes, the increase in FCA cases is quite notable, especially given the prior administration’s pullback in FCPA enforcement. This underscores the DOJ’s commitment to rooting out corporate wrongdoing, regardless of the industry.
The record-breaking FCA recoveries highlight the importance of vigilant oversight and whistleblower protections. In industries with high stakes and complex supply chains, like mining and energy, these enforcement tools can be crucial for rooting out corruption and holding bad actors accountable.
Well said. Maintaining strong whistleblower programs and a commitment to FCA enforcement is essential for safeguarding the integrity of these critical industries. It will be interesting to see how the DOJ continues to prioritize and evolve its approach in the years ahead.
While the record-breaking $6.8 billion in recoveries is certainly impressive, I wonder how this compares to the actual scale of fraud and abuse across the industries under DOJ’s purview. Are these settlements truly commensurate with the wrongdoing, or just the tip of the iceberg?
That’s a fair point. The large dollar figures can obscure the underlying systemic issues. Ongoing vigilance and a willingness to pursue even the most powerful players will be key to ensuring the deterrent effect of FCA enforcement.
The DOJ’s focus on expanding FCA cases beyond traditional healthcare fraud is an interesting development. I wonder if this signals a broader effort to target misconduct in the mining, metals, and energy industries, which are so vital to the nation’s economic and national security interests.
That’s an insightful observation. Expanding FCA enforcement into these strategic sectors could help uncover and deter a wide range of fraudulent practices that undermine fair competition and public trust. It will be important to monitor how this evolves.
The rise in whistleblower-driven FCA suits is an encouraging sign. Empowering private citizens to expose fraud and abuse can be a powerful tool for uncovering misconduct, especially in complex industries like mining and energy. I’m curious to see how this trend evolves over time.
Absolutely. Whistleblowers play a vital role in holding companies accountable. Their willingness to come forward, despite the risks, is crucial for effective enforcement of laws like the False Claims Act.