DOJ Reports $2.9 Billion in FCA Recoveries for FY 2024

The US Department of Justice announced that recoveries from False Claims Act settlements in fiscal year 2024 exceeded $2.9 billion, marking a 30% increase over the previous two years. While filings of affirmative FCA cases decreased slightly, a record number of relator filings were reported, indicating continued activity in civil fraud enforcement, especially in the non-healthcare sectors.

Healthcare fraud remained the highest recovery area, but recoveries were relatively flat compared to the previous year. Notable focus areas included opioid dispensing, unnecessary medical services, and Medicare fraud. The report also highlighted significant recoveries from the Department of Defense, though down from last year's levels, and emphasized cybersecurity fraud amid ongoing compliance initiatives.

Interestingly, recoveries from non-healthcare and non-DOD matters showed a dramatic increase, largely driven by pandemic-related fraud cases, particularly relating to the Paycheck Protection Program, which saw a recovery leap of 418%. This reflects a broader trend in escalating qui tam filings, suggesting robust enforcement efforts are likely to continue into 2025.

Overall, the DOJ's report indicates strong enforcement of the FCA across various sectors, buoyed by a significant increase in whistleblower filings and a commitment to pursuing fraud cases aggressively, setting the stage for more substantial recoveries in the future.