The U.S. Department of Justice said it recovered more than $6.8 billion through settlements and judgments under the False Claims Act during the fiscal year ending September 2025, marking the largest annual recovery in the statute’s history.
The total more than doubled the $2.9 billion collected in fiscal year 2024 and surpassed the prior record of $6.2 billion set in 2014, according to figures released by the department on Friday.
Federal officials said the overwhelming majority of recoveries once again stemmed from healthcare-related fraud, which accounted for more than $5.7 billion of the total. The Justice Department cited enforcement actions involving managed care organizations, prescription drug manufacturers, and medically unnecessary services as the most significant contributors.
Beyond healthcare, the DOJ said it pursued False Claims Act cases tied to fraud in government contracting, including misconduct related to the sale of goods and services to federal agencies.
The department also emphasized its continued focus on cybersecurity compliance, stating that contractors and grant recipients were held accountable when they knowingly failed to meet required security standards while receiving federal funds. Federal prosecutors additionally recovered hundreds of millions of dollars connected to fraud involving pandemic-era relief programs, the DOJ said.
Another area of emphasis involved customs and tariff evasion, with enforcement actions targeting companies accused of underpaying duties owed to the federal government.
Whistleblower activity reached historic levels during the year. According to the DOJ, private citizens filed 1,297 qui tam lawsuits, the highest number ever recorded in a single fiscal year. The government also opened 401 new investigations, reflecting a sharp increase in enforcement activity.
Under the False Claims Act, whistleblowers may bring lawsuits on behalf of the government and receive a share of any recovery, typically ranging from 15% to 30%. DOJ officials noted that whistleblowers played a particularly significant role in cases involving prescription drug pricing and marketing practices.
The department highlighted several major verdicts as examples of the statute’s impact. Among them was a $1.6 billion jury verdict against Johnson & Johnson’s Janssen Products, stemming from findings that the company improperly promoted HIV medications for uses not approved by federal regulators. The DOJ also pointed to a $289 million verdict against CVS Caremark, where relators alleged overbilling tied to Medicare Part D drug programs.
Deputy Attorney General Todd Blanche said the results demonstrate the continued strength of the False Claims Act as an enforcement tool, emphasizing that fraud prevention remains a central priority for the department.
Federal officials indicated that enforcement efforts under the statute are expected to continue at elevated levels, particularly in sectors involving large-scale government spending and public health programs.
