Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

False Claims Act Statistics Reveal Robust Enforcement

Author: Scarinci Hollenbeck, LLC

Date: April 23, 2014

Key Contacts

Back

The Department of Justice recently released its enforcement statistics under the False Claim Act (FCA), the federal government’s primary civil enforcement tool to recover losses due to false claims for government funds and property under government contracts. In short, it was another banner year for the feds.

A Look at the FCA Statistics

During fiscal year 2013, the Department of Justice (DOJ) collected $3.8 billion through FCA settlements and judgments. The recovery represents the second largest in the history of law, although short of last year’s $4.9 billion.

As in prior years, the healthcare industry accounted for the largest percentage of all FCA claims. Of the $2.6 billion in federal health care fraud recoveries, $1.8 billion were from alleged false claims for drugs and medical devices. A large bulk of the settlements involved allegations that drug companies improperly promoted their drugs for uses not approved by the Food and Drug Administration (otherwise known as “off-label marketing”).

According to the DOJ report, procurement fraud rose to record levels in 2013. The agency recovered more than $887 million in settlements and judgments based on allegations of false claims and corruption involving government contracts.

Spotlight on Qui Tam Suits

In addition to imposing liability on any person who knowingly submits a false claim to the government or knowingly makes a false record or statement to get a false claim paid by the government, the FCA law also contains qui tam provisions, which allow private persons to file suit for violations of the statute on behalf of the government. If the government prevails in the action, the whistleblower, known as a relator, receives up to 30 percent of the recovery.

In 2013, $2.9 billion of the $3.8 billion recovered by the DOJ resulted from lawsuits filed under the FCA’s qui tam provisions. In total, 752 claims were filed, which represents over 100 more than the prior record established in FY 2012.

The Message for Government Contractors

The latest statistics highlight that New York and New Jersey businesses, particularly those in the targeted industries, should thoroughly evaluate their FCA compliance activities. Given the rise in qui tam claims, having the proper procedures in place to handle whistleblower complaints should be a top priority.

If you have any questions about the DOJ’s FCA statistics or would like to discuss your company’s compliance activities, please contact me or the Scarinci Hollenbeck attorney with whom you work. 

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Dissolving Your Business: Essential Legal Steps to Protect Your Interests post image

Dissolving Your Business: Essential Legal Steps to Protect Your Interests

If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]

Author: Christopher D. Warren

Link to post with title - "Dissolving Your Business: Essential Legal Steps to Protect Your Interests"
The Role of Corporate Restructuring in Mergers & Acquisitions post image

The Role of Corporate Restructuring in Mergers & Acquisitions

Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]

Author: Dan Brecher

Link to post with title - "The Role of Corporate Restructuring in Mergers & Acquisitions"
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public post image

Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public

Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]

Author: Bryce S. Robins

Link to post with title - "Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public"
Understanding Chattel Paper: A Key Component in Secured Transactions post image

Understanding Chattel Paper: A Key Component in Secured Transactions

Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]

Author: Dan Brecher

Link to post with title - "Understanding Chattel Paper: A Key Component in Secured Transactions"
Crypto Compliance: A Comprehensive Guide post image

Crypto Compliance: A Comprehensive Guide

For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]

Author: Bryce S. Robins

Link to post with title - "Crypto Compliance: A Comprehensive Guide"
Supreme Court and Title VII: Implications for Reverse Discrimination post image

Supreme Court and Title VII: Implications for Reverse Discrimination

Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]

Author: Matthew F. Mimnaugh

Link to post with title - "Supreme Court and Title VII: Implications for Reverse Discrimination"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!