Thirty-five years ago, Congress ushered in the modern era of False Claims Act (“FCA”) enforcement when it enacted the False Claims Amendments Act of 1986. At the time, the FCA was a seldom-enforced statute that resulted in government recoveries each year counted in the tens of millions. Now, 35 years later, the FCA is firmly—and consistently from one administration to another—established as the government’s principal fraud enforcement tool, netting the government annual recoveries counted in the billions. This past year underscored the continuing impact of the FCA and attendant risks to companies that do business—directly or indirectly—with the government.
DOJ announced that it collected more than $5.6 billion in FCA and related recoveries during FY 2021, which is the second-largest total ever for FCA recoveries and the largest since 2014. That figure is inflated by Purdue Pharma’s $2.8 billion bankruptcy payment in connection with its opioid resolutions; but even without the Purdue payment, the government still recovered $2.8 billion from FCA defendants, in line with year-over-year trends for the last 5 years.
Meanwhile, on the legislative and policy front, the chief architect of the 1986 amendments, Senator Chuck Grassley (R-IA), advanced new legislation aimed at strengthening the FCA even further. DOJ also announced several of its own efforts to strengthen the FCA, including plans to unwind Trump Administration policies, leverage the FCA in cybersecurity enforcement,...
The Alliance for a Safe Community chairman urges authorities to take uncompromising legal action against companies accused of submitting false claims under SOCSO's Daya Kerjaya 2.0 programme COMPAN...