The Department of Justice (DOJ) reported a historic recovery of over $6.8 billion in settlements and judgments under the False Claims Act (FCA) during Fiscal Year (FY) 2025. This figure reflects the DOJ’s commitment to robust enforcement, particularly within the healthcare sector, which accounted for more than $5.7 billion of the total recoveries. The annual report, released on January 16, 2025, highlights the ongoing significance of healthcare fraud in the DOJ’s enforcement priorities.
Qui tam lawsuits, where whistleblowers play a critical role, significantly influenced the recovery totals. These cases contributed approximately $5.3 billion in recoveries, with $3.0 billion from intervened cases and $2.3 billion from declined cases. Notably, the government also recovered around $1.5 billion without whistleblower involvement, underscoring the DOJ’s broad enforcement capabilities.
Cyber Fraud and Pandemic Enforcement Show Strong Trends
The DOJ’s Civil Cyber-Fraud Initiative, established in 2021, continued to yield results, with $52 million recovered from nine cybersecurity-related settlements in FY 2025. Although individual settlements averaged $5.77 million, the initiative highlights the government’s intent to enforce compliance with the Cybersecurity Maturity Model Certification (CMMC) regulations. Significant resolutions in this domain included settlements with HNFS/Centene for $11.2 million, Illumina for $9.8 million, and MORSECORP for $4.6 million.
Pandemic-related enforcement remained active as well, with more than 200 FCA settlements and judgments totaling over $230 million in FY 2025. Cumulative recoveries from pandemic-related fraud have exceeded $820 million, with notable actions against Delta Air Lines for $8.1 million related to Payroll Support Program violations, and settlements with medical providers for COVID-related billing abuses totaling $8 million and $8.2 million.
Trade Fraud and Compliance Credits Gain Attention
Trade-related FCA enforcement received a boost from the DOJ’s establishment of a cross-agency Trade Fraud Task Force in August 2025. This initiative has led to resolutions involving misclassification and other schemes to evade duties, with significant settlements including Allied Stone for $12.4 million and Evolution Flooring for $8.1 million. A notable early FY 2026 settlement involved Ceratizit USA, which faced allegations of evading tungsten carbide duties, resulting in a record $54.4 million resolution.
The DOJ emphasized the importance of self-disclosure and cooperation in its recent report. Organizations that proactively disclose issues, share internal investigations, and implement remediation strategies may receive credits that reduce penalties. Several settlements from FY 2025 reflected these credits, indicating the DOJ’s focus on encouraging compliance and cooperation.
As FY 2026 approaches, the DOJ’s focus areas—healthcare, procurement and grants, cybersecurity obligations, pandemic fund integrity, and customs duties—provide a clear roadmap for future enforcement. The combination of record recoveries and filings suggests a sustained commitment to tackling complex fraud cases. For companies in federal healthcare, procurement, research, or global supply chains, investing in robust compliance frameworks and preparing for potential disclosures is essential for navigating the evolving enforcement landscape.
