In 2025, the U.S. Department of Justice announced its intent to further focus on False Claims Act (FCA) cases, which aim to target organizations that defraud the government or falsely certify compliance. This builds on a record-setting 2024, when more cases were brought than ever, with a heavy focus on the healthcare sector.
One of the first signs that an organization may be under government scrutiny is the receipt of a Civil Investigative Demand (CID). CIDs authorize the DOJ to request documents, sworn written answers, or sworn live testimony from individuals and entities, and are increasingly being used in the healthcare field to investigate potential FCA violations.
The receipt of a CID can be easy to miss and does not automatically mean a criminal investigation is underway, but mishandling one can carry serious consequences, including escalating scrutiny, costly settlements, and reputational damage.
Dan Martin, partner in Balch’s White-Collar Defense & Investigations Practice, has spent nearly twenty years helping healthcare clients and businesses of all sizes successfully navigate CIDs and DOJ investigations. He answers key questions about what companies need to know when facing a CID and how risk can be reduced.
What obligations exist when a CID is received?
A CID often comes in the mail or by email. It will say at the top of the first page “Civil Investigative Demand” and indicate that it is from the “United States Department of Justice” but will otherwise appear much like an ordinary subpoena requesting documents, sworn written answers, in-person testimony under oath, or some combination of those items. There will be a deadline for responding so it is important to promptly contact an attorney who has experience successfully navigating these unique situations. Though the CID will identify a person at the DOJ you can contact with any questions, you should not reach out and should instead let your attorney make contact. Your attorney can then negotiate changes to the time for responding and to the scope of the response required.
How can companies and healthcare providers prepare for or mitigate the risks associated with a CID?
One way to prepare for a CID is to ensure that whoever is likely to receive such a document in the mail or by email knows what to look for in order to notice it is a CID, and make sure they know to promptly forward it to a designated point person (e.g., explaining to personnel in the mail room or reception how to spot a CID and directing them to forward any CID to HR or inside counsel). It also would be wise to proactively form a relationship with an attorney who has a track record of successfully handling CIDs, as opposed to waiting until receiving a CID and having to search for such an attorney while the clock is ticking on the deadline for your response to the CID. Some attorneys have been able to negotiate greater narrowing of the scope of responses than other attorneys, which can have a huge impact on your cost of responding and on the level of burden and disruption to your business.
What happens after responding to a CID?
After responding to a CID the government might end the investigation, request additional information, make a demand and try to negotiate a settlement, or proceed with a federal court action, either civil (typically under the False Claims Act) or criminal (such as the Anti-Kickback Statute). The amount of time from the response to the CID to a decision by the government to end the investigation, negotiate a resolution, or pursue a federal action can be as short as a couple of months or can be as long as two or more years.
