Jan 62025

2025 Inflationary Adjustments to FCA Penalties Announced

Scott D. Stein and Catherine Stewart

The Department of Commerce has published the 2025 inflationary adjustments to civil monetary penalties (“CMP”) associated with False Claims Act (“FCA”) violations (see here). The adjusted penalties will go into effect January 15, 2025 and will be assessed for violations that occurred prior to the adjustment, but that are assessed after January 15, 2025.  The minimum False Claims Act penalty will increase from $13,946 to $14,308 per claim and the maximum penalty will increase from $27,894 to $28,619 per claim.

Although technically the increases announced only apply to FCA actions brought by or on behalf the Department of Commerce, we expect that, as it has in years past, DOJ will soon issue a similar announcement that will apply the same increases to CMPs associated with all FCA cases brought by DOJ.

 

This post is as of the posting date stated above. Sidley Austin LLP assumes no duty to update this post or post about any subsequent developments having a bearing on this post.

Scott D. Stein

Chicago

sstein@sidley.com

Catherine Stewart

Chicago

catherine.stewart@sidley.com

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