January 28, 2026
The Department of Justice (DOJ) recently announced its False Claims Act (FCA) recoveries for fiscal year (FY) 2025. In FY 2025, federal FCA recoveries, including both settlements and judgments, exceeded $6.8 billion. This is the highest annual total in the history of the federal False Claims Act. Of that total, $5.3 billion in recoveries resulted from qui tam actions brought by whistleblowers. It was the seventeenth consecutive year of recoveries exceeding $2 billion.
Since 1986, when Congress substantially strengthened the civil False Claims Act, more than $85 billion¹ has been returned to the public fisc under the federal False Claims Act.
The False Claims Act is at its best when it protects taxpayers and the Americans who rely on government programs. The Department’s False Claims Act enforcement is guided by a simple principle: the statute is a powerful tool, and it should be used responsibly. The record-breaking recoveries announced today show our commitment to holding bad actors accountable, safeguarding taxpayer dollars, and protecting vulnerable populations.
– Deputy Assistant Attorney General Brenna Jenny of the Justice Department’s Civil Division.
According to the statistical report accompanying DOJ’s press release, whistleblowers filed 1,297 qui tam lawsuits in 2025 – the highest number ever filed in a single year. Prior to FY2023, there had typically been between 600 and 800 new filings each year. The biggest two aberrations have been in FY2024 (980) and FY2025 (1,297).
As in past years, healthcare fraud accounted for the overwhelming majority of FCA recoveries, with more than $5.7 billion derived from healthcare-related matters—representing roughly 83% of all FY 2025 recoveries.
According to the DOJ, enforcement centered around three critical healthcare areas: Medicare Advantage (Medicare Part C), drug pricing fraud, and medically unnecessary care. One such example is the $98 million settlement with Medicare Advantage plan Independent Health for allegedly submitting unsupported diagnosis codes to inflate reimbursements. In one of the year’s largest single-case recoveries, the government obtained a $948.8 million judgment against Omnicare/CVS for dispensing medications without valid prescriptions.
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.
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 resolves allegations that Raytheon knowingly misrepresented pricing data during contract negotiations, resulting in excess profits for the company.
Pandemic‑related fraud continues to drive a surge in FCA activity as whistleblowers and the government work through the immense volume of misconduct tied to COVID‑era programs. This resulted not only in a rising number of resolutions but also in a steady flow of newly filed cases. The DOJ’s statistics reflect this trend in the “Other” category of qui tam filings. “Other” filings, historically below 200 annually, have skyrocketed since 2022, reaching 798 in FY2025. This number alone equals the average number of total annual qui tam filings prior to FY2023. COVID-19 related recoveries totaled a little more than $230 million in some 200 matters. Of that amount, $20 million is from a settlement with Patrick Walsh related to false claims for PPP loans.
At the same time, the DOJ’s Civil Cyber-Fraud Initiative has emerged as a growing enforcement driver. Recent increasingly large settlements and the rollout of the Department of Defense’s Cybersecurity Maturity Model Certification (CMMC) compliance requirements in November 2025 indicate that cyber‑related FCA activity will continue rising, adding to both the “Other” and Department of Defense categories.
One of the cybersecurity settlements highlighted by the government, was a case brought by our client against MORSECORP. Inc. The $4.6 million settlement resolved allegations involving failure to comply with cybersecurity requirements in its government contracts. Specifically, MORSECORP used a third-party company to host emails without requiring and ensuring that the third party met contract security requirements, failed to implement all required cybersecurity controls, and lacked a system security plan for its covered information systems. MORSECORP submitted an inaccurate score for its implementation of required security controls and when a third-party cybersecurity consultant notified MORSECORP that the score was wrong, MORSECORP did not promptly update it or notify the government.
Anyone who brings foreign‑made goods into the United States and sells them must follow all trade laws. The government depends on truthful information from importers to correctly charge and collect taxes on those goods. The Department continues to work to find and hold accountable anyone who tries to avoid paying tariffs or other required fees.
For example, in the past fiscal year, the Department reached several settlements with businesses that falsely described goods imported from China to avoid antidumping and other duties. One such case involved a $12.4 million settlement with Allied Stone Inc. and its president, Jia “Jerry” Lim, for misrepresenting the type of products they imported.
We have been evaluating DOJ’s recoveries for over a decade. Here you can read our prior comments on the government’s historical record of False Claims Act recoveries.
¹This total does not include recoveries under any state False Claims Acts.
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.