The Department of Justice (DOJ) just released its False Claims Act results for the fiscal year ending September 30, 2024.  By all accounts, it has been another banner year for whistleblowers and the government in their efforts to combat fraud and recover pilfered taxpayer dollars.

First, the overarching numbers for the year:

The government and whistleblowers recovered roughly $2.9 billion in False Claims Act settlements and judgments. This does not include the additional $850 million the government recovered from two settlements just over the wire in October. One was with Teva Pharmaceuticals for $425 million; the other with Raytheon Company for $428 million.

The government and whistleblowers were party to 558 False Claims Act settlements and judgments. It is the second highest number of recoveries, just shy of last year’s record number of 566 recoveries.

Whistleblowers filed 979 False Claims Act suits (under the statute’s qui tam provisions). It is the largest number of qui tam suits ever filed in a single year.

Of the roughly $2.9 billion in recoveries, approximately $2.4 billion (83%) came from matters originated by whistleblowers. This is consistent with the dominant role whistleblowers have played in recent years in originating False Claims Act lawsuits. In fact, since 1986 when Congress significantly increased their incentives and protections, whistleblowers have originated the majority of False Claims Act lawsuits.

Whistleblower received roughly $400 million in awards.

Of the roughly $2.9 billion in recoveries, more than $1.67 billion (58%) came from matters involving healthcare fraud. This does not include the additional amounts the government recovered in these actions for state Medicaid programs. Typically, healthcare fraud recoveries comprise an even higher proportion of total False Claims Act recoveries.

The total amount of False Claims Act recoveries since 1986 is roughly $78 billion with roughly $55 billion (71%) coming from matters originated by whistleblowers. Whistleblowers received roughly $9.5 billion in awards during this period.

Second, the primary areas of fraud enforcement the DOJ highlighted:

Healthcare Fraud.  DOJ highlighted four key healthcare-related enforcement areas: (i) health care providers, pharmaceutical companies and pharmacies that contributed to and exacerbated the opioid crisis; (ii) providers billing Medicare/Medicaid and other government healthcare programs for medically unnecessary services or substandard care; (iii) fraud in the Medicare Advantage (or Medicare Part C) program, which DOJ characterized as an area of “critical importance” because it now represents the largest component of Medicare in terms of federal dollars spent and number of beneficiaries impacted; and (iv) DOJ’s perennial favorite, illegal kickbacks, which DOJ stressed “undermine the integrity of federal health care programs by tainting medical decision-making, increasing health care costs, and adversely affecting competition.”

Military Procurement Fraud.  Next to healthcare-related fraud, government contracting fraud typically accounts for the second-largest area of False Claims Act enforcement.  And within that area, fraud in connection with military supply contracts is common.  DOJ is especially committed to enforcing this area of government procurement because “fraud in these programs not only squanders government funds, but also can deprive servicemembers of critical resources and potentially put them at risk.”

Pandemic Fraud.  Fraud in connection with the trillions of dollars the government doled out in response to the COVID-19 crisis continues to be a top DOJ priority.  Last year, DOJ secured more than 250 False Claims Act settlements and judgments in this area.  They largely related to improper payments under the Paycheck Protection Program and Medicare fraud connected to COVID-19 testing and treatment.   

Cybersecurity.  DOJ continues to take very seriously the threats associated with cybersecurity failures.  It is what prompted the agency’s creation of the Cyber-Fraud Initiative several years ago to use the False Claims Act “to promote cybersecurity compliance by government contractors and grantees by holding them accountable when they knowingly violate applicable cybersecurity requirements.”

Third, the major takeaway from DOJ’s 2024 roundup: the False Claims Act remains the government’s primary fraud-fighting tool with whistleblowers continuing to play a primary role in the government’s fraud enforcement scheme.  DOJ’s $2.9 billion in fraud recoveries was not the biggest annual haul by any stretch.  DOJ’s Annual Statistics show there have been much bigger years in the past.

But this past year’s tally was the largest in the past three years.  More importantly, it was the largest ever in number of cases filed, meaning we can expect much bigger years down the road when these actions reach resolution.  In terms of the 979 qui tam cases filed, there has not been another year even close, again reinforcing the prominent role whistleblowers play in enforcing the False Claims Act.  It is a point DOJ Civil Chief Brian Boynton went out of his way to promote in DOJ’s report:

“Whistleblowers play a critical role in identifying fraud schemes.  We continue to be grateful for their efforts and often substantial sacrifices to uncover and report these schemes.”

So if you think you might have information relating to healthcare fraud, procurement fraud, COVID-19 fraud, cybersecurity fraud, or any other fraud against the government and want to learn more about what it means to be a whistleblower under the False Claims Act, please do not hesitate to contact us.  We will connect you with an experienced member of the Constantine Cannon whistleblower team for a free and confidential consult.  Who knows, you may have the case that will contribute to DOJ’s next great False Claims Act recovery.

Read DOJ’s False Claims Act Roundup for FY 2024 — Another Banner Year for the Government and Whistleblowers at constantinecannon.com