WASHINGTON – A $6.8 billion haul from False Claims Act lawsuits is the largest for one year, with cases filed by whistleblowers bringing in the majority of money.
The Department of Justice last week announced 2025 was a record year for lawsuits brought under the FCA, which targets companies and individuals who defraud the federal government. Health care defendants paid $5.7 billion for allegedly overcharging federal programs like Medicare and Medicaid.
“The Department’s False Claims Act enforcement is guided by a simple principle: the statute is a powerful tool, and it should be used responsibly,” said Brenna Jenny, deputy assistant attorney general of the DOJ’s Civil Division.
“The record-breaking recoveries announced today show our commitment to holding bad actors accountable, safeguarding taxpayer dollars, and protecting vulnerable populations.”
Under the FCA, whistleblowers file suit in the name of state and federal governments, which then have the option to join the case. If they do not, the whistleblower receives a larger percentage of whatever is recovered.
For example, a former Aetna employee sued CVS Caremark in 2014, alleging Caremark billed the Centers for Medicare and Medicaid Services for drugs at a higher rate than it did for other retail pharmacies.
Last year, a Philadelphia federal judge imposed a $290 million penalty. Part of what can make FCA cases so expensive is that judgments are tripled.
Walgreens paid $350 million in April to settle claims it illegally filled unlawful opioid prescriptions. The same month, Gilead Sciences settled kickback claims for $202 million.
Other large recoveries include a $425 million settlement with Teva Pharmaceuticals for paying patients’ copays on its multiple sclerosis drug Copaxone and a jury verdict of $949 million against Omnicare for dispensing drugs without valid prescriptions to elderly and disabled people living in long-term care facilities.
Outside of the health-care industry, Raytheon Company settled allegations it inflated costs in military contracts for $428 million.
Nearly 1,300 whistleblowers filed new cases this year, leading the DOJ to open 401 investigations. In 2025, whistleblowers took $330 million from settlements and verdicts.
