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WBK Industry News - Federal Regulatory Developments

Department of Justice Recovers Over $4.7 Billion from False Claims Act Cases

The Justice Department recovered more than $4.7 billion in settlements and judgments from civil cases involving fraud and false claims against the government in fiscal year 2016.  This marks the third highest annual recovery in False Claims Act history and brings the fiscal year average to almost $4 billion since fiscal year 2009.  The total recovery during this eight-year period equals $31.3 billion.

Of the $4.7 billion recovered in fiscal year 2016, nearly $1.7 billion came from settlements and judgments in cases alleging false claims in connection with federally insured residential mortgages.  This marks the second highest annual recovery in the financial industry in the wake of the housing and mortgage fraud crisis.

$2.5 billion came from the health care industry, which includes drug companies, medical device companies, hospitals, nursing homes, laboratories, and physicians.  The $2.5 billion recovered reflects only federal losses and, in many of these cases, the Department was instrumental in recovering additional millions of dollars for state Medicaid programs.  This marks the seventh consecutive year civil health care fraud recoveries have exceeded $2 billion.

Also, $2.9 billion of the $4.7 billion recovered related to whistleblower lawsuits filed under the qui tam provisions of the False Claims Act.  During fiscal year 2016, the government paid out $519 million to the individuals who exposed fraud and false claims by filing a qui tam complaint.

The Department of Justice press release can be found here: https://www.justice.gov/opa/pr/justice-department-recovers-over-47-billion-false-claims-act-cases-fiscal-year-2016.