Justice Department Announces $3.8 Billion In False Claims Act Recoveries In FY 2013

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On December 20, 2013, the Justice Department announced a total of $3.8 billion dollars in settlements and judgments from civil cases involving the False Claims Act for Fiscal Year (FY) 2013. Total recoveries under the False Claims Act since January 2009 have reached $17 billion.

The largest recoveries in FY 2013 related to health care fraud, which totaled $2.6 billion. Of this amount, $1.8 billion was from alleged false claims for drugs and medical devices under federally insured health programs. Many of these settlements involved allegations that pharmaceutical manufactures promoted their drugs improperly for uses not approved by the Food and Drug Administration.

Recoveries in qui tam cases during FY 2013 totaled $2.9 billion, with whistleblowers recovering $345 million. The number of qui tam suits filed in FY 2013 increased to 752. The Federal Government also announced an additional $443 million in recoveries for state Medicaid programs.

To read the Justice Department press release, click here.

Reporter, Lauren E. Slive, Atlanta, + 1 404 572 3592, lslive@kslaw.com