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In a record-breaking year for federal enforcement actions, the Department of Justice has recovered an unprecedented $6.8 billion through False Claims Act resolutions in fiscal year 2025, according to statistics released on January 16, 2026.
The figure represents the highest annual recovery since the DOJ began tracking such data in 1987, surpassing the previous record of $6.1 billion set in 2014. This year’s total more than doubles the amounts recovered in recent years, following a period of relatively modest recoveries: $2.2 billion in FY 2022, $2.8 billion in FY 2023, and $3.1 billion in FY 2024.
The healthcare industry accounted for the lion’s share of recoveries, contributing a record $5.7 billion—approximately 83% of the total. This concentration exceeds the historical average and shows a marked increase from the previous two years, when healthcare represented 68% and 58% of total recoveries in FY 2023 and FY 2024 respectively.
Two significant pharmaceutical industry verdicts drove nearly half of the healthcare-related recoveries, amounting to approximately $2.5 billion—with individual cases yielding $1.6 billion and $948 million. These unusually large awards featured remarkably high per-claim penalties, even accounting for the treble damages typically seen in successful FCA trials.
Department of Defense contract enforcement also saw a substantial increase, with $633 million in recoveries—a 550% jump from the previous year’s $98 million. This figure nearly matched the all-time high of $640 million set in 2006.
The remaining $532 million in recoveries came from various sectors, including $230 million from pandemic-related fraud cases involving the Paycheck Protection Program. The DOJ also prioritized emerging areas including cybersecurity fraud ($52 million), civil rights enforcement, and violations of trade laws involving tariff and customs avoidance.
Whistleblower activity reached unprecedented levels in 2025, with 1,297 lawsuits filed—the highest number since record-keeping began and a 32% increase over the previous year. Overall, qui tam lawsuits yielded more than $5.3 billion, representing over 77% of total FCA recoveries. Whistleblowers received more than $330 million in compensation, with $262 million going to those in healthcare-related cases.
“The Department of Justice has clearly intensified its enforcement efforts across multiple sectors, but particularly in healthcare,” said Elizabeth Carpenter, a healthcare compliance attorney at Morrison & Foerster. “This record-breaking year signals that both the government and whistleblowers are aggressively pursuing perceived fraud against federal programs.”
Within healthcare, the DOJ focused on three major areas: managed care, prescription drugs, and medically unnecessary services. Medicare Advantage enforcement continued to be a priority, resulting in settlements including a $98 million resolution involving allegations of unsupported diagnosis codes and a $62 million settlement concerning false diagnosis submissions.
Prescription drug-related enforcement yielded substantial recoveries, including the $948 million verdict against a long-term care pharmacy for dispensing medications without valid prescriptions, and a $450 million settlement with a generic drug manufacturer over alleged copay assistance violations and price-fixing.
The Trump administration has also established a new Civil Rights Fraud Initiative aimed at using the FCA to target institutions and contractors allegedly violating federal civil rights laws. According to a May 2025 memorandum, entities that certify compliance with civil rights laws while “knowingly engaging in racist preferences, mandates, policies, programs, and activities, including through diversity, equity, and inclusion programs” could face FCA liability.
This initiative has already prompted investigations into hiring and promotion practices at major government contractors across various industries, according to December 2025 reporting by The Wall Street Journal.
Meanwhile, ongoing litigation challenges to the constitutionality of the FCA’s qui tam provisions could fundamentally reshape federal fraud enforcement. A Middle District of Florida ruling that found these provisions violate the Constitution’s Appointments Clause is currently under appeal in the Eleventh Circuit, with similar challenges emerging in other jurisdictions.
In a significant development just days before the annual statistics were released, the Trump administration announced the formation of a Division for National Fraud Enforcement within the DOJ on January 8, 2026. This unprecedented arrangement will be led by an assistant attorney general operating directly from the White House and reporting to the president and vice president. The initial focus appears to be on benefits-related fraud in Minnesota.
With record enforcement numbers, expanding areas of scrutiny, and structural changes to fraud prosecution, organizations—particularly those in healthcare—face heightened compliance risks. Careful monitoring of these developments and proactive compliance measures will be essential as these enforcement trends continue to evolve.
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8 Comments
Interesting to see the record-breaking recoveries under the False Claims Act. It highlights the government’s heightened focus on cracking down on fraud and abuse, especially in the healthcare sector. I wonder what specific enforcement actions or investigations led to such a significant jump in recoveries this fiscal year.
Yes, the significant increase in healthcare-related recoveries is noteworthy. The two large pharmaceutical industry verdicts must have involved complex and high-stakes cases.
The statistics are quite remarkable, with over $6.8 billion in recoveries under the False Claims Act. It underscores the government’s commitment to rooting out fraud and waste, particularly in the healthcare sector. I wonder if this level of enforcement will be sustained in the coming years.
The False Claims Act has certainly proven to be an effective tool for the government to pursue cases of fraud and misuse of federal funds. It will be interesting to see if this record-breaking year is an anomaly or part of a broader trend of increased enforcement activity.
You’re right, these types of enforcement actions can have broader implications for industries like healthcare and pharmaceuticals. It will be worth monitoring if this leads to changes in compliance practices or more cautious behavior.
This is a significant achievement for the Department of Justice in their efforts to combat fraud and abuse. The False Claims Act has clearly been a valuable tool, especially in the healthcare industry where the majority of the recoveries were made. I’ll be interested to see if this level of enforcement continues in the future.
Curious to learn more about the specific cases and investigations that contributed to this record-breaking year for False Claims Act enforcement. The large pharmaceutical industry verdicts in particular seem to have played a major role. I’ll be following this story closely.
Yes, those two individual cases resulting in nearly $2.5 billion in recoveries are quite remarkable. It would be helpful to understand the nature of the misconduct uncovered in those investigations.