The U.S. Department of Justice (DOJ)announcedrecoveries of more than $5.6 billion in False Claims Act settlements and judgments in fiscal year 2021. This amount is a staggering increase from the $2.2 billion recovered during fiscal year 2020 and the second-highest total ever recorded since the FCA was enacted in 1986.
Although a rebound from pandemic-related constraints may explain part of the substantial jump in recoveries, the near record-setting number also reflects the success of various recently implemented DOJ strategies, including using large-scale data mining and AI to identify high-value cases, a targeted approach in deciding when to intervene, and a focus on combating the opioid epidemic.
The healthcare industry continues to be the biggest target, with more than $5 billion, or close to 90 percent, of the awards relating to matters that involved drug and medical device manufacturers, managed care providers, hospitals, pharmacies, hospice organizations, laboratories, and physicians.
Substantial recoveries from prescription opioid manufacturers comprise more than half of this total, including a $2.8 billion settlement obtained from Purdue Pharma in fiscal year 2021. With the war on prescription opioids continuing in full force on multiple fronts (including the recentcriminal convictionof ex-Rochester Drug Co-operative CEO Laurence Doud for drug trafficking), expect to see more FCA recoveries in this area in fiscal year 2022.
The DOJ's announcement also shows a shift...
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