Whistleblower Cases Hit New Peak in DOJ's Record Year, Recoveries Top $2.9 Billion
Whistleblower Cases Hit New Peak in DOJ's Record Year, Recoveries Top $2.9 Billion
Blog Article
In an unprecedented year for the U.S. Department of Justice (DOJ), whistleblowers have filed the highest number of False Claims Act (FCA) cases ever recorded. For fiscal year 2024, which spans from October 1, 2023, to September 30, 2024, a total of 979 new qui tam actions were initiated. These actions led to settlements and judgments exceeding a staggering $2.9 billion, with a significant $2.4 billion originating from qui tam cases alone. Notably, relator shares of these settlements and judgments surpassed $400 million for the third consecutive year.
Health care fraud continues to dominate FCA recoveries, with settlements and judgments in this sector exceeding $1.67 billion. This impressive sum represents about 58% of the total recoveries, excluding state Medicaid program recoveries. Noteworthy are two settlements linked to alleged misconduct contributing to the opioid crisis, accounting for approximately $875 million. Beyond the opioid-related cases, other health care settlements emerged from allegations of substandard care or unnecessary services. The DOJ remains committed to tacklingMedicare Advantage fraud and illegal kickbacks.
While health care fraud is the largest source of FCA recoveries, the DOJ’s report highlights significant settlements in military procurement fraud, Paycheck Protection Program (PPP) loans, and cybersecurity requirement failures in government contracts. Pandemic relief fraud remains a critical area for DOJ enforcement, contributing to 250 settlements and judgments and over $250 million in recoveries. The DOJ reiterated its dedication to combating fraud and abuse in federal programs, focusing on health care fraud, the opioid crisis, pandemic relief program fraud, and cybersecurity violations in government contracts.
The DOJ emphasizes the importance of cooperation in FCA investigations and litigations, encouraging defendants to engage in self-disclosure, demonstrate cooperation, and implement remedial measures. Such actions can benefit defendants through acknowledgment in settlement agreements and reduced penalties. Organizations facing FCA actions must carefully consider their approach to self-disclosure and cooperation from the outset.
Deputy Assistant Attorney General Michael Granston is scheduled to speak at the upcoming Federal Bar Association’s Qui Tam Conference. This event may provide additional insights into the DOJ's enforcement priorities, which could shift with the changing administration. Despite potential changes, FCA enforcement actions are unlikely to diminish. Pam Bondi, President Trump’s nominee for Attorney General, affirmed during her Senate confirmation hearing the DOJ’s commitment to defending the FCA’s constitutionality and its role in safeguarding against fraud while ensuring significant financial recoveries for the nation.