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DOJ Reports Record-Breaking False Claims Act Recoveries Exceeding $6.8 Billion in Fiscal Year 2025
The U.S. Department of Justice has announced unprecedented civil recoveries under the False Claims Act (FCA) for Fiscal Year 2025, totaling more than $6.8 billion. This figure represents the highest recovery amount in a single year in FCA history, more than doubling the previous year’s $2.9 billion.
Health care fraud dominated the recoveries, accounting for approximately $5.7 billion—or 84% of the total amount. This marks a significant increase from FY 2024, when health care recoveries represented $1.7 billion, or 56% of total recoveries.
Whistleblower actions continued to drive enforcement, with qui tam lawsuits reaching an all-time high of 1,297 filings in FY 2025, surpassing the previous record of 980 set just a year earlier. These whistleblower-initiated cases generated over 78% of total recoveries, amounting to $5.3 billion. Of the qui tam suits filed, 458 focused on the health care sector.
The record-breaking year brings the government’s total FCA recoveries to more than $85 billion since the statute was amended in 1986 to allow for treble damages and enhanced incentives for whistleblowers.
In its annual report, the DOJ highlighted several key enforcement areas, with Medicare Advantage fraud receiving particular attention. As Medicare Advantage has grown to become the largest component of the Medicare program, the government secured substantial recoveries from organizations that allegedly engaged in improper medical record reviews to increase Medicare payments.
One of the year’s largest health care recoveries stemmed from a $949 million jury verdict against a national long-term care pharmacy that allegedly dispensed drugs without valid prescriptions to elderly and disabled residents in assisted living and long-term care facilities.
The pharmaceutical industry also faced significant scrutiny, with a jury awarding over $1.6 billion in damages against a drug manufacturer accused of violating the FCA through kickback schemes and off-label promotion of HIV drugs. In another case, a pharmacy benefit manager faced a $289 million jury award for allegedly misrepresenting prescription drug prices to the federal government.
Beyond health care, the government recovered significant funds from other sectors. Military procurement fraud yielded the second-largest procurement fraud settlement in history—a $428 million resolution with a defense contractor that allegedly provided false cost data and engaged in double-billing practices.
Pandemic-related fraud continued to be a focus, with more than 200 cases resolved for over $230 million. Most of these involved inaccurate information in Paycheck Protection Program loan applications. The DOJ has now collected more than $820 million in pandemic-related fraud recoveries since the beginning of the COVID-19 crisis.
The Department’s Civil Cyber-Fraud Initiative, launched in October 2021, has gained momentum, with cybersecurity fraud settlements more than tripling in each of the past two years. In FY 2025 alone, the government recovered over $52 million across nine settlements targeting companies that received federal funds while failing to meet required cybersecurity standards.
Tariff and customs avoidance cases also yielded significant recoveries, including $12.4 million from a Texas-based supplier of countertop and cabinetry products that allegedly misrepresented goods imported from China to avoid antidumping duties. An even larger settlement—$54.4 million with a distributor of ceramic compounds—was reached in December 2025, placing it in FY 2026’s accounting.
The DOJ opened 401 new investigations during FY 2025, including matters aligned with the Trump administration’s policy objectives, such as combatting discriminatory practices related to diversity initiatives, addressing antisemitism, and prioritizing the denaturalization of individuals who allegedly procured citizenship through misrepresentation.
The constitutionality of qui tam provisions remains under legal scrutiny. In September 2024, a judge in the U.S. District Court for the Middle District of Florida ruled that the qui tam provisions violate the Appointments Clause of the Constitution. With the Eleventh Circuit having heard oral arguments in December 2025, a decision is expected in the coming months, potentially reshaping the landscape for whistleblower actions under the FCA.
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9 Comments
The record-breaking $6.8 billion in FCA recoveries is a clear indication that whistleblowers are playing a critical role in exposing fraud, especially in the health care industry. It will be interesting to see if this level of enforcement can be sustained going forward.
Impressive numbers from the DOJ on FCA recoveries, though I wonder how much of this is driven by the increasing complexity of the health care system. Curious to see what steps the government is taking to proactively identify and prevent fraud in the first place.
The DOJ’s $6.8 billion in FCA recoveries is an impressive feat, but it also highlights the significant challenge of combating fraud, especially in the complex health care sector. Curious to see if this enforcement success can be sustained and what other strategies the government may employ.
The DOJ’s record-breaking FCA recoveries are certainly noteworthy, but I can’t help but wonder if this is a symptom of a larger issue in the health care industry. Perhaps the focus should shift towards addressing the root causes of fraud to prevent it from happening in the first place.
The DOJ’s $6.8 billion in FCA recoveries is a significant milestone, showcasing the power of whistleblower programs to uncover fraud. However, I hope this enforcement momentum doesn’t distract from the need for broader reforms to address systemic issues in the health care industry.
While the DOJ’s record-breaking FCA recoveries are commendable, I can’t help but wonder about the broader implications for the health care industry. Are these enforcement actions addressing root causes, or just scratching the surface of a deeper systemic problem?
Seeing the DOJ achieve record-breaking FCA recoveries is a positive sign, but it also raises questions about the underlying factors driving this surge in fraud. Is this just the tip of the iceberg, or are there deeper structural problems that need to be addressed?
The DOJ’s $6.8 billion in FCA recoveries is an impressive figure, but it also raises questions about the underlying challenges in the health care sector. Are there opportunities to enhance prevention and early detection of fraud before it becomes widespread?
Wow, over $6.8 billion in False Claims Act recoveries for the DOJ – that’s an incredible achievement, especially with the health care sector driving much of the increase. Curious to see if this trend continues as the government cracks down on fraud.