The U.S. Department of Justice’s resolutions under the False Claims Act, which totaled more than $500 million during this year’s first half, have outpaced activity in the comparable period in 2021, but many of them have been “relatively modest,” says a law firm in a report issued Wednesday.
The FCA allows private parties to file whistleblower, or qui tam, actions alleging that defendants defrauded the federal government.
Gibson Dunn & Crutcher LLP reported more than $393 million in resolutions in its comparable mid-year 2021 report.
The law firm says in this year’s report that “it remains to be seen whether DOJ will match the recoveries obtained during 2021, which included blockbuster settlements stemming from the opioid crisis.”
The U.S. Department of Justice said it obtained more than $5.6 billion in settlements and judgments from civil cases involving fraud and false claims against the government under the FCA for the fiscal year ended Sept. 30, 2021.
Gibson Dunn said some of the most notable settlements this year reflect continued fallout from COVID-19, and a new DOJ initiative around cyber fraud.
These include:
- In February Arlington, Virginia-based Zen Solutions Inc. agreed to pay $31,000 in damages and civil penalties to settle DOJ allegations it violated the FCA, by obtaining more than one Paycheck Protection Program loan in 2020.
- The DOJ said in April that Tampa, Florida-based Physician Partners of America LLC and its chief medical officer would pay $24.5...
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