WBK Industry News - Federal Regulatory Developments

DOJ Receives over $2.8 Billion from FCA Settlements and Judgements in 2018

The U.S. Department of Justice reported that it obtained over $2.8 billion from False Claims Act (FCA) settlements and judgements in the fiscal year ending September 30, 2018.

Specifically, the DOJ reported that of the more than $2.8 billion in FCA settlements and judgements, $2.5 billion involved the health care industry; including drug and medical device manufacturers, managed care providers, hospitals, pharmacies, hospice organizations, laboratories, and physicians.  Other notable areas included government procurement and the mortgage industry.  Moreover, the DOJ reported that over $2.1 billion arose from lawsuits filed under the qui tam provisions of the FCA, which allow whistleblowers to file claims on behalf of the federal government.  In these cases, the government reported that it paid out $301 million to the whistleblowers who exposed fraud and false claims by filing FCA actions.

In the past year alone an average of 12 new qui tam cases were filed each week with a total of 645 qui tam actions being filed in the past year.  Additionally, the DOJ reportedly collected over $59 billion from FCA actions since 1986.