Fiscal Year 2012 A Record Year for False Claims Act Recoveries

By Martin & Jones on October 29, 2012

Fiscal Year 2012 saw more than $9 billion returned to the government through federal and state False Claims Act cases. Of the 30 largest recoveries in Fiscal Year 2012, 28 were the result of whistleblower-initiated suits. The largest settlement was for $3 billion, with GlaxoSmithKline over illegal marketing of nine different prescription drugs.

Fiscal Year 2013 looks to be another important year for False Claims Act recoveries, if not a new record. Settlements totaling $3.5 billion have been announced and will be recovered in Fiscal Year 2013.

The False Claims Act allows whistleblowers to bring suit against companies who have defrauded the government out of funds. Many states have their own versions of the False Claims Act. The U.S. Department of Justice renewed emphasis on the False Claims Act in January 2009 and the result has been unprecedented success in recovering monies out of which federal healthcare programs have been defrauded.