Justice Department Reports Historic $6.8 Billion in False Claims Act Recoveries

The U.S. Department of Justice has recovered a record-breaking $6.8 billion from False Claims Act cases in fiscal year 2025, marking the highest annual recovery in the statute’s history. The unprecedented figure signals an aggressive escalation in the administration’s enforcement strategy against fraud involving federal funds.

This milestone comes amid a dramatic surge in whistleblower activity, with 1,297 qui tam lawsuits filed in FY 2025—a 32 percent jump from the previous year’s 980 filings and the highest number ever recorded. Simultaneously, the government initiated 401 of its own investigations, with nearly half targeting potential fraud in healthcare.

Healthcare fraud continues to dominate FCA enforcement actions, accounting for $5.7 billion of the total recoveries. Three particularly significant verdicts, collectively worth $2.8 billion, contributed substantially to this figure, though these cases remain under appeal. Among the notable healthcare settlements was a nearly $1 billion judgment against a pharmacy and more than $660 million from pharmaceutical manufacturers related to alleged kickback schemes involving copay assistance programs and speaker events.

“These record-setting figures demonstrate our unwavering commitment to protecting taxpayer dollars and ensuring that government programs operate with integrity,” said a Justice Department spokesperson familiar with the enforcement efforts. “When companies defraud the government, they’re ultimately defrauding American taxpayers.”

Whistleblowers have emerged as increasingly powerful players in the government’s anti-fraud efforts. Of the $5.7 billion recovered from healthcare matters, whistleblower-initiated cases accounted for $4.5 billion—nearly 79 percent of the total. In a striking development, whistleblowers in healthcare cases actually recovered more money ($2.27 billion) in matters where the government declined to intervene than in cases with government intervention ($2.225 billion).

Industry experts note this shift could encourage more whistleblowers to pursue cases independently when the government chooses not to get involved.

“The fact that whistleblowers are succeeding without government intervention changes the risk calculation for companies,” said Sarah Westbrook, a healthcare compliance attorney at a national law firm. “It means potential defendants can’t breathe easy just because the DOJ passes on a case.”

The Justice Department has emphasized its commitment to incentivizing voluntary disclosure and cooperation. Several settlements included reduced penalties for organizations that self-reported misconduct, assisted in investigations, or implemented robust remedial measures. This approach aligns with the DOJ’s broader strategy of encouraging corporate compliance and transparency.

For companies in highly regulated sectors, especially healthcare and defense contracting, the escalating enforcement activity presents significant compliance challenges. The record recoveries come as the administration has expanded FCA enforcement beyond traditional healthcare fraud to areas including cybersecurity compliance, environmental violations, and COVID-19 relief fund misuse.

The pharmaceutical industry faces particularly intense scrutiny, with multiple settlements targeting alleged violations involving patient assistance programs and physician speaker events that prosecutors characterized as disguised kickbacks designed to boost prescriptions.

Legal experts advise that organizations receiving federal funding should strengthen internal compliance programs and carefully evaluate all strategic options when confronted with potential FCA violations.

“With qui tam filings at an all-time high and recoveries breaking records, companies need to be extraordinarily vigilant,” noted Michael Freeman, a former federal prosecutor who now specializes in FCA defense. “The stakes have never been higher, and the government clearly intends to maintain this aggressive enforcement posture.”

As FCA cases continue to proliferate, affected industries can expect continued regulatory attention and potentially more record-breaking settlements in the coming years.