The Department of Justice (DOJ) issued its annual press release and statistical report on False Claims Act settlements and recoveries under the False Claims Act. For the fiscal year ended September 30, 2024 (FY 2024), False Claims Act recoveries exceeded $2.9 billion. Of that total, $2.4 billion in recoveries resulted from qui tam actions brought by whistleblowers. Whistleblowers filed 979 qui tam lawsuits in 2024 – the highest number ever filed in a single year. It was the sixteenth consecutive year of recoveries exceeding $2 billion. FY 2024 saw 558 settlements and judgments, the second-highest total in FCA history behind last year’s record of 566.
Since 1986, when Congress substantially strengthened the civil False Claims Act, more than $78 billion has been returned to the public fisc under the False Claims Act.
Whistleblowers Critical to FY 2024 False Claims Act Recoveries
Whistleblowers continue to play a central role in False Claims Act enforcement. In fact, recoveries in successful qui tam cases have outnumbered the amount recovered in non-qui tam cases every year since 1995. Over $2.4 billion of the total recoveries resulted from actions filed by whistleblowers under the qui tam provision of the False Claims Act. DOJ awarded more than $400 million to whistleblowers who exposed fraud and false claims by filing these actions.
The number of lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act has grown significantly since the 1986 amendments to the law. In FY 2024, 997 new qui tam suits were filed, the highest number ever filed in a single year. Whistleblowers were involved in 558 settlements and judgments, the second largest number in a single year.
The Department places a high priority on fighting fraud and abuse in federal programs. The results announced today highlight once again that such conduct will not be tolerated, and that those who knowingly misuse taxpayer funds will be held accountable.
-Principal Deputy Assistant Attorney General Boynton
Health Care Fraud Tops FY 2024 False Claims Act Recoveries
Once again, healthcare fraud accounted for the lion’s share of the recoveries, in both intervened and declined cases. These recoveries restore funds to federal programs such as Medicare, Medicaid, and TRICARE (the healthcare program for military members and their dependents.)
The $1.67 billion[1] in healthcare fraud recoveries came from all areas of the healthcare system, including managed care providers, hospitals, pharmacies, laboratories, acute care facilities, and physicians.
Among the prominent types of healthcare fraud were cases involving the provision of unnecessary services and substandard care, Medicare Advantage (Medicare Part C) fraud, drug pricing fraud, and unlawful kickbacks in violation of the Anti-Kickback and Stark laws.
One of the settlements in FY 2024 was against CVS Health subsidiary Oak Street Health. The $60 million settlement resolved allegations that the Medicare Advantage organization paid kickbacks to insurance agents in exchange for referring seniors to its clinics.
The other healthcare matters involved various schemes including the provision of unnecessary medical procedures, providing substandard care, and overprescribing narcotics.
[1]This amount only reflects the federal portion of recoveries. In many cases, additional amounts were returned to state programs such as Medicaid.
Significant Recoveries in Other Areas
In addition to combatting healthcare fraud, the False Claims Act is a powerful weapon against other types of government fraud such as procurement fraud , COVID-related fraud, and threats to cybersecurity. The Department of Justice highlighted successes in each area.
Procurement Fraud
Raytheon Company paid $428 million to settle claims that it inflated costs and double-billed the Department of Defense on weapons maintenance contracts. This settlement, the second largest False Claims Act recovery in history, resolves allegations that Raytheon knowingly misrepresented pricing data during contract negotiations, resulting in excess profits for the company.
Pandemic Fraud
COVID-19 related recoveries totaled a little more than $250 million in some 250 matters. Of that amount, $120 million is from a settlement with Kabbage, Inc. related to false claims for PPP loan forgiveness.
Civil Cyber-Fraud Initiative
Guidehouse, Inc. and Nan McKay paid $7.6 million and $3.7 million, respectively, to settle allegations of cybersecurity failures in a New York state project funded by a federal grant. The project aimed to create a secure online platform for residents to apply for rental assistance during the Covid-19 pandemic. Both companies admitted to failing to complete mandatory testing of the website, which was shut down just 12 hours after a data breach exposed applicants’ personal information.
Successful Public-Private Partnership
We join DOJ in applauding the commitment of public servants throughout the federal and state governments who have dedicated themselves to this important work.
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.
Principal Deputy Assistant Attorney General Boynton
Whistleblower Law Collaborative LLC
In representing whistleblowers nationwide, we see firsthand the professionalism and dedication of government attorneys, investigators, and others. Whistleblower Law Collaborative shares their commitment to exposing fraud and recovering government funds on behalf of taxpayers.
We also see firsthand the courage and commitment of our whistleblower clients. We have such admiration and gratitude for their willingness to risk coming forward.
