Litigation: 25th anniversary of the False Claims Act brings record number of actions

DOJ and whistleblowers pursue more false claims cases, but adverse verdicts can be costly

This past January, the U.S. Department of Justice (DOJ) celebrated the 25th anniversary of the 1986 Amendments to the False Claims Act (FCA). The DOJ used this time to tout its use of the FCA in recovering more than $30 billion,  and to describe its future enforcement efforts. In a recent speech, U.S. Attorney General Eric Holder stated that the DOJ is committed to “aggressively utilizing” the FCA to “eradicate the scourge of fraud from some of government’s most critical programs.”

When looking to the recent successes under the FCA, we see how popular and vital it remains as a tool of the government in retrieving monies spent on false claims. In fact, in the past three years, the DOJ has seen its highest amount of recoveries since the FCA was amended 25 years ago. Since January 2009, the DOJ has recovered $8.8 billion under the FCA, amounting to the largest three-year total in the Act’s history.

Contributing Author

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Matthew Walsh

Matthew Walsh is a partner in the Chicago office of Hinshaw & Culbertson LLP and co-leader of the firm's Business Litigation Department. His practice concentrates...

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