Department of Justice False Claims Act Settlement Agreements

Department of Justice False Claims Act Settlement Agreements: An Overview

The False Claims Act (FCA) is a federal law that imposes liability on individuals and companies who knowingly submit false claims for payment to the government. The Department of Justice (DOJ) has the authority to investigate and prosecute individuals and companies for FCA violations. The DOJ’s enforcement efforts for FCA violations have resulted in numerous settlements with companies and individuals.

What are FCA Settlement Agreements?

FCA settlement agreements are legal contracts between the DOJ and individuals or companies who have been accused of violating the FCA. These agreements are used to resolve disputes between the government and the accused parties. Settlement agreements typically involve payment of a fine or penalty, as well as an agreement to comply with certain conditions or requirements to prevent future FCA violations.

How do FCA Settlement Agreements Benefit the Government?

FCA settlement agreements benefit the government in several ways. The most obvious benefit is the financial recovery from the settlement agreement. Settlement agreements can result in millions of dollars in fines and penalties for the government. Additionally, settlement agreements deter future FCA violations by sending a strong message to companies and individuals that the government takes FCA violations seriously and will not tolerate fraudulent behavior. Finally, settlement agreements often require companies and individuals to implement compliance programs to prevent future violations, which can help reduce the overall cost of enforcement for the government.

Examples of FCA Settlement Agreements

In recent years, there have been several notable FCA settlement agreements. In 2019, Walmart agreed to pay $282 million to settle allegations that it had violated the FCA by knowingly providing false information to the government about its pharmacies’ compliance with regulations. In 2020, pharmaceutical company Novartis agreed to pay $678 million to settle allegations that it had paid illegal kickbacks to doctors to prescribe its drugs. These settlements demonstrate the government’s commitment to enforcing the FCA and holding companies accountable for fraudulent behavior.


FCA settlement agreements are an important tool for the DOJ in enforcing the FCA and deterring fraudulent behavior. Settlement agreements provide financial recovery for the government, send a message to companies and individuals that FCA violations will not be tolerated, and require the implementation of compliance programs to prevent future violations. As the DOJ continues to enforce the FCA, it is likely that we will see more settlement agreements in the future.