The Department of Justice (DOJ) released its Fiscal Year (FY) 2025 False Claims Act (FCA) results, and the message for government contractors is clear: FCA enforcement is accelerating, and procurement fraud, cybersecurity non-compliance, pandemic program fraud, and tariff/custom duty evasion remain key priorities. DOJ reported total FCA settlements and judgments of more than $6.8 Billion for FY2025, the largest annual recovery in FCA history. Below are key takeaways from DOJ’s annual fraud statistics report, our outlook for FY2026, and important compliance considerations for government contractors. For more information on this topic, visit this link to register for our webinar, “PilieroMazza Annual Review: FCA Enforcement and Compliance Updates for Government Contractors—What to Watch in 2026.”
A. Record-Setting FY2025 Numbers
The total amount of FY2025 FCA settlements and judgments was $6,888,096,266, the highest annual amount since DOJ began tracking FCA statistics. In addition, a record number of new matters were initiated (1,698), continuing the trend of significant increases each year (1,218 new matters in FY2023; 1,405 new matters in FY2024). This was fueled by whistleblowers filing 1,297 new qui tam lawsuits, the most yet by far in a single year. Government-initiated investigations dipped slightly from 423 in FY2024 to 401 in FY2025. Recoveries from qui tam matters also dwarfed non-qui tam recoveries, $5.3 Billion compared to $1.5 Billion, respectively. Relators’...
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