According to a recent press release from the United States Department of Justice, settlements and judgments under the False Claims Act will exceed $2.68 billion in Fiscal Year 2023. This is the highest number of settlements and judgments in a single year, with the government and whistleblowers involved in 543 cases. The False Claims Act is a critical tool for protecting government programs and operations, imposing treble damages and penalties on those who falsely claim money from the United States or fail to pay owed funds.

According to the press release, the healthcare industry accounted for more than $1.8 billion of the total recoveries, which included cases involving managed care providers, hospitals, pharmacies, laboratories, and physicians. These recoveries demonstrate the Department of Justice's emphasis on key enforcement priorities such as fraud in pandemic relief programs and alleged breaches of cybersecurity requirements in government contracts and grants.

Whistleblower or qui tam actions, in which individuals file lawsuits alleging false claims on behalf of the government, were critical to these recoveries. In fiscal year 2023, whistleblowers filed 712 qui tam suits, and the Justice Department reported settlements and judgments totaling more than $2.3 billion in these and previous suits. Whistleblowers typically receive a portion of the recovery, which ranges from 15% to 30%.

The press release also includes examples of False Claims Act cases prosecuted by the government and whistleblowers, such as Medicare Advantage, unnecessary services and substandard care, the opioid epidemic, illegal kickbacks, and procurement fraud. It also highlights the Department's efforts to combat pandemic-related fraud, such as improper payments made through the Paycheck Protection Program, as well as the Civil Cyber-Fraud Initiative, which promotes cybersecurity compliance among government contractors and grantees.

Finally, the record-breaking recoveries under the False Claims Act in fiscal year 2023 demonstrate the Department of Justice's commitment to protecting taxpayer dollars from fraud and abuse, as well as the critical role of whistleblowers in identifying and exposing fraudulent activity.