DOJ Reports Another Year of Big Recoveries in Whistleblower Qui Tam Lawsuits Filed Under the False Claims Act
Per a recent announcement from the U.S. Department of Justice (“DOJ”), settlements and judgments under the False Claims Act (“FCA”) resulted in more than $6.8 billion recovered during DOJ’s fiscal year that ended on September 30, 2025. The dollar amount recovered set a record for the largest amount recovered in a single year in FCA history. Whistleblowers also filed 1,297 qui tam cases, the highest number in a single year, and the Government commenced 401 independent investigations under the FCA.
Of the more than $6.8 billion recovered, over $5.7 billion arose from FCA cases involving healthcare fraud, which recoveries typically reimburse federal programs including Medicare, Medicaid, and TRICARE (the U.S. Military healthcare program). In the healthcare arena, DOJ remained committed to three main types of cases: prescription drugs, managed care, and medically unnecessary treatment cases. Notably, Rabin Kammerer Johnson was involved in representing one of the whistleblowers in the national opioid qui tam case against Walgreens that contributed $300 million to the above recoveries.
Other FCA recoveries derived from cases involving the Government’s purchase and sale of goods from vendors. This includes when vendors overcharge the U.S. Military for goods and services. It includes a growing area for qui tam actions, where vendors knowingly violate agreed-to cybersecurity requirements. DOJ also increasingly pursued cases involving fraud on pandemic funding programs, e.g., Paycheck Protection Program loans.
In addition, DOJ formed a Trade Fraud Task Force to tackle fraud involving the evasion of tariffs and customs duties. This area of FCA cases focuses on fraudsters who falsely represent the type of goods imported into the U.S., the country of origin for an imported good, or the masking of certain goods to evade paying customs duties.
DOJ remained committed to incentivizing entities and individuals that voluntarily disclose misconduct, demonstrably cooperate with an investigation, and take effective remedial measures to correct fraud. Entities and individuals’ cooperation may involve self-disclosure to the Government, assisting with calculating losses to the Government, disclosures of facts not known to the Government, and remedial measures that may include terminating employees.
When a qui tam case results in a recovery for the Government, and DOJ has elected to intervene in the case, the whistleblower receives between 15% and 25% of the recovery. When DOJ has elected not to intervene in a qui tam case—which results in a much lower rate of obtaining a recovery and higher dismissal rate—the whistleblower will receive between 25% and 30% for litigating the case with little DOJ assistance.
The FCA imposes treble damages and penalties on fraudsters who knowingly submit false or fraudulent claims to Government programs. Since the 1986 amendments to the FCA, which enhanced incentives for whistleblowers to bring qui tam actions, the Government fisc has been reimbursed billions of dollars in taxpayer funds. Thus, the FCA remains a formidable tool for alerting DOJ about fraud perpetrated on Government programs and creates a major incentive for whistleblowers who are willing to risk potential retaliation for reporting such fraud.
