The Department of Justice (DOJ) announced record recoveries under the False Claims Act in 2025, with reported settlements and judgments totaling over $6.8 billion. This represents the highest single-year recovery figure in the statute’s history. However, the figures in DOJ’s press release require additional context.
Understanding the FY 2025 Recovery Figures
On January 15, 2026, DOJ released its annual False Claims Act statistics for fiscal year (FY) 2025. DOJ reported $6.8 billion in settlements and judgments, a significant increase compared to prior years. The report also noted that whistleblowers filed 1,297 new qui tam lawsuits in FY 2025, surpassing the previous record of 979 filings in FY 2024.
These figures underscore the continued reliance on the False Claims Act as the federal government’s primary tool for combating fraud and recovering taxpayer funds. At the same time, DOJ’s FY 2025 report reflects a methodological change that affects how recovery totals should be interpreted.
Cases on Appeal and Money Not Yet Recovered
For the first time, DOJ’s FY 2025 report included recoveries based on trial judgments that are currently pending on appeal. This approach differs from prior DOJ reporting practices, which focused on funds actually recovered by the government.
Judgments under appellate review are not final. If an appellate court reverses or modifies a judgment, the corresponding amounts may never be paid to the government, requiring DOJ to adjust its reported recovery figures retroactively.
One case, U.S. ex rel. Penelow v. Janssen Products, L.P., illustrates this issue. The trial judgment in Penelow accounts for more than 23 percent of DOJ’s reported FY 2025 recoveries, or approximately $1.6 billion of the $6.8 billion total. That judgment is currently on appeal before the U.S. Court of Appeals for the Third Circuit. If the judgment is reversed, the reported annual recovery figure would decline by nearly one quarter.
Penelow is not the only False Claims Act trial judgment currently under appellate review. Other appealed cases also contribute to DOJ’s reported totals, meaning the final recovery amount for FY 2025 remains uncertain.
The Critical Role of Non-Intervened Cases
Apart from DOJ’s revised reporting methodology, the FY 2025 data highlight a significant trend: the growing importance of False Claims Act cases pursued without government intervention.
When whistleblowers file qui tam lawsuits, DOJ investigates the allegations and decides whether to intervene and assume primary responsibility for the case. If DOJ declines intervention, whistleblowers retain the right to pursue the case independently with their counsel.
A decision not to intervene does not necessarily reflect a lack of merit. In some cases, it may reflect DOJ’s confidence in relators’ counsel to litigate the matter through motions practice, discovery, trial, and potential appeals. Whistleblowers in non-intervened cases assume responsibility for developing the evidence needed to prevail.
DOJ’s FY 2025 report, consistent with prior years, shows that non-intervened cases continue to generate meaningful recoveries. The Penelow case exemplifies this trend. Although still on appeal, the judgment resulted from a case litigated through trial without government intervention and, if upheld, would rank among the largest False Claims Act recoveries on record.
The rising number of qui tam filings reflects the increasing willingness of whistleblowers to report fraud against the government. While not all cases result in intervention, the FY 2025 data indicate that non-intervened actions continue to play a meaningful role in fraud recovery.
Taxpayer losses from fraud against government programs are estimated to approach $100 billion annually. Even with billions recovered each year, False Claims Act enforcement recovers only a fraction of the total losses. Whistleblowers in both intervened and non-intervened cases remain essential to uncovering fraud and protecting the public fisc.
What Keller Grover LLP Can Do for Whistleblowers
Keller Grover LLP represents whistleblowers in False Claims Act matters across industries and jurisdictions. If you have information concerning fraud against government programs, contact our qui tam attorneys for a free and confidential case review. The record number of qui tam filings in FY 2025 underscores the continued importance of experienced, strategic legal representation in whistleblower cases.