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What the Future Holds for the False Claims Act
The False Claims Act (FCA) is one of the U.S. Department of Justice’s (DOJ) most powerful civil and criminal enforcement statutes. Also one of the oldest, it originated more than 150 years ago, after the Civil War, to pursue claims of fraud and defective weapons that had been sold to Union troops. The present day FCA provides for treble damages, civil monetary penalties, and recovery of attorney fees. See generally, 31 USC §3730. One of the crucial provisions authorizes qui tam relators to bring an enforcement action on behalf of the United States and receive up to 30% of any recovery if the DOJ does not intervene. If the government does decide to intervene, relators can still receive up to 25% of any recovery. Payment of their attorney fees is available in either setting.
The FCA recoveries have been substantial. In January 2025, the DOJ announced, for the fiscal year ending Sept. 30, 2024, recovery of $2.9 billion, which was the highest amount in the past three years. Importantly, the DOJ also reported that there were almost 1,000 private relators’ actions (979) — an increase of 37% from the preceding year. See, DOJ Jan. 15, 2025 Press Release. The importance of FCA cases, especially those brought by private relators, is underscored by the increasing number of large, private actions such as the January 2025 complaint against Walgreens for filling millions of unlawful opioid prescriptions. U.S. v. Walgreen Co., et al., No. 1:23cv1617 (N.D. Ill. 2023), which initially started as a qui tam action in the Northern District of Illinois. The government intervened in the Walgreens case in light of the allegations of extensive fraudulent conduct and potential recovery.
What Is The Future for the FCA
With the inauguration having taken place and the new Attorney General having been sworn in, the question is, what does the second Trump administration augur for the FCA? The question remains how, not if, the Trump DOJ will change DOJ’s enforcement policies, whether they will maintain current enforcement policies, and what the impact will be, especially for the FCA.
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