Jan 172025

DOJ Releases FY2024 FCA Statistics

Jaime L.M. Jones, Scott D. Stein and Brenna E. Jenny

This week DOJ released its annual report on FCA settlements and new cases, available here.  Although DOJ trumpeted a record-high number of qui tam cases filed (979) and a near record-high number of settlements and judgements (558), much of this increase in volume appears driven by the ongoing surge of Paycheck Protection Program cases.  Healthcare FCA cases remained stable in fiscal year 2024 (“FY2024”) as compared to the prior two years, and associated recoveries were slightly down.  Additional trends are outlined below.

  • Total recoveries have been largely consistent in recent years. Settlements and judgments totaled more than $2.9 billion in FY 2024, representing a slight increase over the $2.8 billion collected in FY 2023, but still trending slightly lower than the pre-pandemic time period.
  • Healthcare’s share is down. Of the $2.9 billion collected this past year, $1.67 billion (~57%) involved cases on behalf of the Department of Human Services (HHS); $93 million (~ 3%) involved the Department of Defense; and $1.2 billion (~ 40%) involved other federal agencies, including the Small Business Administration, which is responsible for investigating misuse of the Paycheck Protection Program. Total recoveries from HHS-related qui tam cases were at the lowest level since 2009.

  • DOJ continues to drive settlements. In FY 2024, DOJ recovered $2.2 billion from qui tam actions in which it intervened or otherwise pursued. Settlements and judgments in declined qui tam actions in FY 2024 dropped to $218 million, by far the lowest amount since FY2020.

  • More new FCA actions from relators; fewer from DOJ. The number of new qui tam actions jumped to 979 in FY 2024 (a new high), up from 713 in FY 2023. New FCA matters brought directly by DOJ dropped to 423 in FY 2024 from 505 in FY 2023, but remain elevated as compared to the pre-pandemic period.

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.

Jaime L.M. Jones

Chicago

jaimejones@sidley.com

Scott D. Stein

Chicago

sstein@sidley.com

Brenna E. Jenny

Washington, D.C.

bjenny@sidley.com

You might also like
Sixth Circuit Affirms Orders Compelling Relator to Seek Government Consent to Dismiss Qui Tam Pursuant to Settlement Agreement

The Sixth Circuit recently confirmed that there is no per se bar on relators releasing previously filed FCA claims as part of a settlement agreement, although the government must still subsequently consent to the dismissal of such claims. See State Farm Mut. Auto. Ins. Co. v. Angelo, 95 F.4th 419 (6th Cir. 2024).

Potential Liability of Investors in the Healthcare Industry Heightens as Hospital Investors Enter into Novel Settlement

A recent False Claims Act settlement between the Department of Justice, a New Jersey hospital, and the hospital’s investors also included a novel Federal Debt Collection Practices Act (“FDCPA”) settlement with the investors, highlighting the government’s continued efforts to pursue investors in the healthcare industry.

DOJ Begins Memorializing Basis for Cooperation Credit in FCA Settlement Agreements

Recently, DOJ quietly began implementing what appears to be a new policy to memorialize in FCA settlements the basis for the settling company earning credit for various forms of cooperation.