FY 2025 FCA Settlements and Judgments Statistics Show Highest Recoveries Ever
Last week, DOJ released its annual report detailing FCA recoveries and new cases, which can be found here. In the press release, accessible here, DOJ touts two records in fiscal year 2025 (“FY 2025”): (1) $6.89 billion in settlements and judgments (a 120% increase from FY 2024); and (2) 1,297 qui tam cases filed (a 32% increase from FY 2024). FCA cases against the healthcare industry once again accounted for a significant portion (83%) of total recoveries.
DOJ Reaches $9.8 Million Settlement with Genetic Testing Company Illumina Inc. to Resolve FCA Allegations
DOJ announced that genetic testing company Illumina Inc. will pay $9.8 million to resolve allegations that it sold genomic sequencing systems with cybersecurity vulnerabilities to the various federal Departments and agencies in violation of the FCA. According to DOJ Civil Division Assistant Attorney General Brett A. Shumate, “This settlement underscores the importance of cybersecurity in handling genetic information and the Department’s commitment to ensuring that federal contractors adhere to requirements to protect sensitive information from cyber threats.”
DOJ Releases FY2024 FCA Statistics
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.
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.