DOJ Reports Record $6.8 Billion in False Claims Act Recoveries for 2025, Led by Healthcare and Pandemic Fraud Cases

The U.S. Department of Justice has secured a record-breaking $6.8 billion through settlements and judgments under the False Claims Act during the fiscal year ending September 2025, marking the highest annual recovery in the statute’s history.

This milestone represents a dramatic increase from the $2.9 billion collected in fiscal year 2024, more than doubling the previous year’s figure and surpassing the prior record of $6.2 billion set in 2014, according to data released by the department last Friday.

Healthcare fraud continued to dominate the recovery landscape, accounting for an overwhelming $5.7 billion of the total. The Justice Department’s enforcement actions primarily targeted managed care organizations, prescription drug manufacturers, and providers of medically unnecessary services, which proved to be the most significant contributors to the record haul.

“The results demonstrate the continued strength of the False Claims Act as an enforcement tool,” said Deputy Attorney General Todd Blanche, who emphasized that fraud prevention remains a central priority for the department.

Beyond the healthcare sector, the DOJ actively pursued False Claims Act cases related to government contracting fraud, investigating misconduct in the sale of goods and services to federal agencies. The department’s expanded focus reflects a strategic effort to protect taxpayer dollars across multiple sectors.

Cybersecurity compliance emerged as another critical enforcement area. The department held contractors and grant recipients accountable when they knowingly failed to meet required security standards while receiving federal funds. This focus comes amid growing concerns about digital vulnerabilities in government systems and increasing cyber threats to national infrastructure.

The DOJ also recovered hundreds of millions of dollars connected to fraud involving pandemic-era relief programs, highlighting continued efforts to combat exploitation of emergency government assistance. These cases typically involved falsified applications for loans and grants intended to support businesses during the COVID-19 crisis.

Customs and tariff evasion represented another notable enforcement category, with the department targeting companies accused of underpaying duties owed to the federal government. These actions reflect heightened attention to trade compliance and revenue protection.

Whistleblower activity reached unprecedented levels during the year, with private citizens filing 1,297 qui tam lawsuits—the highest number ever recorded in a single fiscal year. The government also opened 401 new investigations, signaling a sharp increase in enforcement activity.

Under the False Claims Act’s whistleblower provisions, individuals who bring lawsuits on behalf of the government can receive between 15% and 30% of any resulting recovery. DOJ officials noted that whistleblowers played a particularly significant role in cases involving prescription drug pricing and marketing practices.

Several landmark verdicts highlighted the statute’s impact. A $1.6 billion jury verdict against Johnson & Johnson’s Janssen Products resulted from findings that the company improperly promoted HIV medications for uses not approved by federal regulators. Additionally, a $289 million verdict against CVS Caremark addressed allegations of overbilling tied to Medicare Part D drug programs.

The record recoveries come amid increased scrutiny of healthcare spending and government contracts. Industry analysts note that the DOJ’s aggressive enforcement approach signals potential risk for companies operating in heavily regulated sectors, particularly those dependent on federal reimbursement.

Federal officials indicated that enforcement efforts under the statute are expected to continue at elevated levels, particularly in sectors involving large-scale government spending and public health programs. This sustained focus suggests companies will need to enhance compliance programs and internal controls to mitigate potential liability under the False Claims Act.

The record recovery also underscores the statute’s enduring power as a tool for combating fraud against the government, nearly 160 years after its initial enactment during the Civil War to address procurement fraud.