DOJ Announces Record Number of New FCA Cases, $4.7 Billion in Fraud Recoveries in FY 2016

DOJ recently announced that it recovered over $4.7 billion in settlements and judgments from civil fraud cases in the fiscal year ending September 30, 2016.  That recovery is significantly higher than the $3.5 billion that DOJ recovered in FY 2015.  The FY 2016 amount is the third highest annual fraud recovery ever.

Over half of the total came from the healthcare industry, which accounted for nearly $2.6 billion of the settlements and judgments.  The financial industry was the next most significant source of fraud recoveries; settlements and judgments in connection with federally-insured residential mortgages were nearly $1.7 billion.  Major healthcare cases include two pharmaceutical settlements of over $400 million each, as well as a hospital settlement of over $500 million and a laboratory settlement of over $250 million, combining federal and state recoveries.

As the chart below shows, DOJ initiated 69 new healthcare civil fraud matters in 2016, more than it had initiated in any previous year.  New qui tam suits filings (501) nearly matched the previous all time high (504) set in 2013, indicating that the FCA pipeline is as full as it has ever been.  After a slightly down year for healthcare recoveries in FY 2015, this year’s numbers suggest that the pipeline for healthcare False Claims Act cases has been fully replenished.


The DOJ press release can be found here.