Category Archives: False Claims Act

DOJ Announces Formal Guidance in Justice Manual for Considering Disclosure and Cooperation by Contractors on False Claims Act Matters

On May 7, 2019, the US Department of Justice (DOJ) announced new guidelines for awarding credit to contractors or individuals who voluntarily disclose False Claims Act (FCA)−related misconduct, actively cooperate with the DOJ on FCA investigations, or take effective remedial measures to mitigate or rectify FCA-related misconduct. The release represents the first formally published guidance from the DOJ on the guidelines it will consider in awarding cooperation credit. Assistant Attorney General Jody Hunt stated, “False Claims Act defendants may merit a more favorable resolution by providing meaningful assistance to the Department of Justice – from voluntary disclosure, which is the most valuable form of cooperation, to various other efforts, including the sharing of information gleaned from an internal investigation and taking remedial steps through new or improved compliance programs.”[1]

Though the guidelines do not explicitly discuss or categorize the credit afforded to cooperating contractors, they represent the first memorialized guidelines and steps contractors can take to potentially lessen penalties and damages in an FCA actions. The guidelines are located in the Justice Manual, Section 4-4.112.

The guidelines state, “Entities or individuals that make proactive, timely, and voluntary self-disclosure to the Department about misconduct will receive credit during resolution of a FCA case.” Other examples of cooperation with government investigations include identifying individuals responsible for the misconduct, disclosing relevant facts relevant to the government’s investigation, and preserving and collecting pertinent documents and other evidence related to the alleged misconduct.

For remedial measures taken by the contractor or individual, the government will consider “a thorough analysis of the cause of the underlying conduct,” whether a contractor implemented or improved an effective compliance program, and whether appropriate disciplinary actions were taken against those responsible for the misconduct, among other steps.

Impact on Contractors and Individuals

These guidelines provide greater clarity and specifics on the types of conduct the DOJ values related to FCA actions and describe, more explicitly than any prior guidance, the credit the DOJ is prepared to grant. Though the DOJ will retain discretion when awarding credit to contractors and individuals, these new guidelines offer a roadmap for contractors looking to reduce penalties and damages in FCA actions.


[1] DOJ, Department of Justice Issues Guidance on False Claims Act Matters and Updates Justice Manual (May 7, 2019), available at: https://www.justice.gov/opa/pr/department-justice-issues-guidance-false-claims-act-matters-and-updates-justice-manual

False Claims Act Recoveries in FY 2018: A Quantitative Review

On December 21, 2018, the US Department of Justice (DOJ) released its False Claims Act (FCA) recovery results for the fiscal year ending September 30, 2018. It was another strong year for FCA judgments and settlements for the DOJ, which recovered over $2.8 billion from civil cases involving false claims and other related fraud. There were 767 new FCA matters initiated in FY 2018, a decrease of fifty-eight from FY 2017. Continue reading False Claims Act Recoveries in FY 2018: A Quantitative Review

Justice Department Recovers over $3.5 Billion from False Claims Act Cases in Fiscal Year 2015

Healthcare, mortgage, and government contract fraud dominated fiscal year 2015 recoveries. This is the fourth consecutive year that the Department of Justice has exceeded $3.5 billion in recovery. Continue reading Justice Department Recovers over $3.5 Billion from False Claims Act Cases in Fiscal Year 2015

Report Details $2.3B in 2014 Health Fraud Recovery

A recent Law360 article noted that federal prosecutors in 2014 netted more than $2 billion from fraud investigations in healthcare and life sciences. Whistleblower suits are on the rise, and the government recovered $1.9 billion more in 2014 than in 2013 in False Claims Act, Stark Law, and Anti-Kickback Statute violations. Continue reading Report Details $2.3B in 2014 Health Fraud Recovery

False Statements in Federal Grant Applications Present a Risk of Significant Financial Exposure to Grant Recipients

Two federal appellate courts have upheld awards of damages under the civil False Claims Act (FCA) (31 U.S.C. 3729) equal to three times the total amount of money paid under federal grants (US ex rel Longhi v US); US ex rel Feldman v van Gorp).
Continue reading False Statements in Federal Grant Applications Present a Risk of Significant Financial Exposure to Grant Recipients

Insight into the Department of Justice False Claims Act GFY 2012 Settlement

In October the Department of Justice released its FY 2012 data on civil FCA settlements. The data shows a surprising uptick in civil FCA settlements from prior years. In Government Fiscal Year (GFY) 2012, civil FCA settlements totaled $4.9 billion, which represented an overall increase of 62 percent from GFY 2011.  Continue reading Insight into the Department of Justice False Claims Act GFY 2012 Settlement