The Department of Justice (DOJ) obtained more than $5.6 billion in settlements and judgments from civil cases in 2021. This is the second largest annual total amount in False Claim Act (FCA) history and the largest since 2014. The FCA, according to DOJ, serves as the government’s primary civil tool to redress false claims involving a multitude of government operations and other functions (such as government contracting). The government is often able to collect treble damages for violations of the FCA.
In the area of government contracting, examples of some judgments included the following–$50 million for a contract modification, $25 million for false cost and pricing data, and $32.1 million to resolve allegations (United Airlines) on contacts to deliver mail internationally.
There were also matters involving kickbacks in government contracts that included payments from subcontractors to prime contractors as well as misrepresenting the status of a woman owned small business. One government contractor paid more than $9 million because a project manager allegedly solicited kickbacks from subcontractors and the company also charged the government for a service not in the contract by spreading it across unrelated pricing components. For a further read, click here for DOJ website: https://www.justice.gov/opa/pr/justice-department-s-false-claims-act-settlements-and-judgments-exceed-56-billion-fiscal-year https://www.justice.gov/opa/pr/justice-department-s-false-claims-act-settlements-and-judgments-exceed-56-billion-fiscal-year