Short Take: The Continuing Rise of False Claims Act Recoveries
December 9, 2014
By: Lindsay Simmons
On November 20, 2014 the Department of Justice announced that it recovered nearly $6 billion from False Claims Act cases during Fiscal Year 2014, cresting $5 billion for the first time ever. Acting Associate Attorney General Delery stated that "these figures result not only from large individual matters, but from a continuous commitment year after year to pursue those who defraud taxpayers and to remain vigilant in identifying those who would unlawfully obtain money from the federal fisc.” Acting Assistant Attorney General Branda echoed these remarks stating that "the department will continue to enforce the law aggressively to ensure the integrity of government programs designed to keep us safer, healthier and economically more prosperous.”
As our readers know, the False Claims Act is the government’s primary tool for addressing false claims regarding government funds and property under government contracts. Whistleblowers come forward in increasing numbers, triggering more government investigations, which, in turn, have led to the surge in recoveries we see today.
Most false claims actions are filed under the Act's whistleblower provisions that allow individuals to file lawsuits on behalf of the government. The number of whistleblower suits filed in fiscal year 2014 exceeded 700 and recoveries totaled nearly $3 billion, with whistleblowers receiving $435 million. Many of these recoveries were from government contractors.
Lindsay Simmons is responsible for the contents of this short take.
© Jackson Kelly PLLC 2014