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DOJ Reports Record $6.8 Billion in False Claims Act Recoveries for Fiscal Year 2025
The U.S. Department of Justice announced unprecedented False Claims Act recoveries exceeding $6.8 billion for fiscal year 2025, more than doubling the previous year’s $2.9 billion total. This milestone represents the highest recovery amount in the FCA’s history, according to a report released on January 16, 2026.
Healthcare fraud dominated these recoveries, accounting for approximately $5.7 billion—84% of the total—compared to just $1.7 billion in FY 2024. Since the statute was amended in 1986 to allow for treble damages and enhanced whistleblower incentives, the government has collected over $85 billion in FCA recoveries.
The year also saw a record-breaking 1,297 qui tam lawsuits filed by whistleblowers, surpassing the previous high of 980 in FY 2024. These whistleblower-initiated cases generated 78% of total recoveries, amounting to $5.3 billion. Of these qui tam suits, 458 specifically targeted the healthcare sector.
Medicare Advantage fraud remained a primary enforcement focus as this program has become the largest component of Medicare. One substantial recovery came from a Medicare Advantage organization that allegedly conducted improper retrospective medical record reviews to add diagnoses that increased Medicare payments. The DOJ indicated it continues to litigate numerous similar cases against Medicare Advantage organizations.
Prescription drug fraud yielded some of the largest healthcare recoveries. A jury verdict of $949 million was secured against a national long-term care pharmacy that allegedly dispensed medications without valid prescriptions to elderly and disabled residents in assisted living facilities. Another significant verdict awarded $1.6 billion in damages against a drug manufacturer accused of kickback schemes and off-label promotion of HIV drugs.
The DOJ also highlighted a $45 million settlement with a wound care provider and its founder who allegedly orchestrated a nationwide scheme to bill Medicare for unnecessary surgical debridements.
Beyond healthcare, the government recovered substantial funds from military procurement fraud, including the second-largest procurement fraud settlement in history—$428 million from a contractor that allegedly provided false cost data and double-billed on defense contracts.
Pandemic-related fraud accounted for over $230 million in recoveries across more than 200 cases, primarily involving misrepresentations in PPP loan applications. One notable case resulted in an $8.2 million recovery for false claims related to COVID-19 services for insured patients billed to a program designed for the uninsured. To date, the DOJ has collected over $820 million in pandemic-related fraud recoveries.
Cybersecurity fraud has emerged as a growing enforcement priority. The Civil Cyber-Fraud Initiative, launched in October 2021, recovered over $52 million across nine settlements in FY 2025. The DOJ noted that civil cybersecurity fraud settlements have more than tripled in each of the past two years.
Tariff and customs avoidance cases also yielded significant recoveries, including $12.4 million from a Texas-based supplier that allegedly misrepresented goods imported from China to avoid antidumping duties. An even larger $54.4 million customs fraud settlement—the largest in FCA history—was reached in December 2025 but will be counted in FY 2026 figures.
The DOJ opened 401 new investigations in FY 2025, including matters aligned with the Trump administration’s policy objectives such as combating certain diversity, equity, and inclusion practices; addressing antisemitism; scrutinizing gender-affirming care; ending sanctuary jurisdictions; and prioritizing denaturalization of individuals who allegedly obtained citizenship fraudulently.
The record number of qui tam filings comes amid constitutional challenges to the whistleblower provisions. On September 30, 2024, a federal judge in Florida ruled that the qui tam provisions violate the Appointments Clause of Article II of the Constitution. The Eleventh Circuit heard oral arguments on this landmark case in December 2025, with a decision expected in the coming months.
These enforcement trends provide valuable insights for healthcare providers, government contractors, and other entities facing potential FCA liability as they prepare for increased scrutiny in 2026.
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7 Comments
The $85 billion in total False Claims Act recoveries since 1986 is an impressive statistic. This law has clearly been an effective tool in rooting out fraud and waste, especially in government programs and contracting. Hopefully these efforts continue to strengthen oversight and deter future misconduct.
Wow, a staggering $6.8 billion in False Claims Act recoveries! This shows the government is getting serious about combating fraud, especially in the healthcare sector. It’s great to see whistleblowers playing such a critical role in exposing these schemes.
The healthcare sector seems to be a prime target for False Claims Act enforcement, which makes sense given the massive government spending and programs involved. Curious to see if other industries start seeing similar crackdowns on fraud in the future.
The record-breaking 1,297 qui tam lawsuits filed by whistleblowers is really impressive. It’s heartening to see the system incentivizing people to come forward and report fraudulent activities. Curious to see how these cases unfold and what further recoveries might be possible.
Medicare Advantage fraud seems to be a major focus of these enforcement efforts. Given the size and importance of this program, it’s understandable why the government would prioritize cracking down on any abuse or misuse of taxpayer funds. Rigorous oversight is clearly needed.
$5.7 billion in healthcare fraud recoveries is a huge number. While concerning to see the scale of the problem, it’s good the DOJ is aggressively pursuing these cases and holding bad actors accountable. Curious to learn more about the specific schemes and entities involved.
It will be interesting to track how these False Claims Act recoveries get reinvested or used by the government. Hopefully the funds can be directed towards improving healthcare services, increasing oversight, or other initiatives that benefit the public interest.