The Department of Justice’s enforcement efforts have resulted in the “Highest Number of Settlements and Judgements in History” for False Claims Act prosecutions over the past year. In fiscal year 2023 alone, False Claims Act settlements and judgments reached $2.68 billion. That is nearly a 22 percent increase over fiscal year 2022, which saw over $2.2 billion in settlements and judgments. This upward trend shows no sign of subsiding in 2024. The number of whistleblower cases continues to grow following the pandemic, the DOJ’s enforcement priorities remain focused on federal health care and procurement funding, and monetary penalties were recently increased for inflation.¹

This record number was driven by increasing volumes of whistleblower claims. The False Claims Act provides monetary incentives for whistleblowers to file suit on behalf of the U.S. government, and penalizes anyone who knowingly submits, or causes to submit, false claims for payment to the U.S. government. Fiscal year 2023 saw an average of thirteen new qui tam cases every week, up from twelve average qui tam cases per week in fiscal year 2022. The settlements and judgments for qui tam enforcement actions came in at a whopping $2.3 billion of the year’s $2.68 billion total, a 21 percent increase over the prior fiscal year.

In this press release, dated February 22, 2024, the DOJ confirms that False Claims Act enforcement is one of its top priorities. The head of the DOJ’s Civil Division stated, “American taxpayers deserve to know that their hard-earned dollars will be used to support the important government programs and operations for which they were intended.” He recently confirmed that, last year, the DOJ opened over 500 new False Claims Act cases that were not qui tam actions and set an annual record for issuing Civil Investigative Demands. These statements highlight several priority areas for DOJ enforcement actions:

• Health Care: Health care matters accounted for approximately $1.8 billion of the total $2.68 billion in settlements and judgments. The DOJ pursued enforcement actions concerning the Medicare Advantage (also known as the Medicare Part C program), Medicare Part B, unnecessary medical services and substandard care, prescription opioids, kickback schemes, and telemedicine. Many of these actions particularly focused on the Medicare Advantage program, the biggest facet of Medicare in terms of federal dollars and number of beneficiaries. 
• Government Contracting: The DOJ continues to remain focused on procurement program fraud, especially those involving the purchase of goods and/or services in connection with military programs. The DOJ also touted its ongoing Civil Cyber-Fraud Initiative, which uses the False Claims Act to promote cybersecurity compliance by contractors and grantees. 
• COVID-19/Pandemic Fraud: The DOJ remains committed to prosecuting improper payments under the Paycheck Protection Program (PPP) enacted by the U.S. Small Business Administration. Last year, it resolved around 270 matters involving improper PPP loans, recovering over $48 million. 
• Individual Defendants: The DOJ also continues to prosecute individuals including doctors and executives for False Claims Act violations. These enforcement actions are seen as crucial to “deter future fraud, incentivize changes in both corporate and individual behaviors, ensure that the proper parties are held responsible, and promote the public’s confidence in our justice system.”

About Ice Miller’s False Claims Act and Qui Tam Practice

Ice Miller attorneys have defended commercial clients in numerous False Claims Act investigations and lawsuits. Our experience includes significant claims involving the pharmaceutical, procurement, health care and student financial aid industries. For more information, please contact a member of our White Collar Defense & Investigations group.

^{[1] 89 FR 9764}

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.