False Claims Act settlements explained

Last checked: 22 October 2026 · How resolutions work

The False Claims Act, 31 U.S.C. 3729, makes a person who knowingly submits a false claim to the U.S. government liable for a civil penalty plus three times the government's damages ¹. Private whistleblowers can sue on the government's behalf and share in any recovery ². A Justice Department release on one such settlement, dated 24 January 2025, states that the claims are allegations only and that there has been no determination of liability ³. The Department reported over US$6.8 billion in settlements and judgments in fiscal year 2025 ⁴.

Statute: 31 U.S.C. 3729 (liability) and 3730 (civil actions) ^1,2
Damages: Three times the government's damages, plus a civil penalty ¹
Civil penalty in statute text: US$5,000 to US$10,000 per violation, as adjusted under the Federal Civil Penalties Inflation Adjustment Act of 1990 ¹
Intent standard: "Knowingly" covers actual knowledge, deliberate ignorance or reckless disregard, with no proof of specific intent to defraud ¹
Whistleblower share: 15 to 25 percent if the government proceeds, 25 to 30 percent if it does not ²
FY2025 recoveries: Over US$6.8 billion in settlements and judgments, year ending 30 September 2025 ⁴

What the law says

The False Claims Act is a civil statute. A person who violates section 3729(a)(1) "is liable to the United States Government for a civil penalty of not less than $5,000 and not more than $10,000," as adjusted for inflation, "plus 3 times the amount of damages which the Government sustains" ¹.

The words "knowing" and "knowingly" mean the person had actual knowledge of the information, acted in deliberate ignorance of its truth or falsity, or acted in reckless disregard of its truth or falsity ¹. The statute says they "require no proof of specific intent to defraud" ¹.

A court may reduce damages to not less than two times the government's damages where the person reported all known information within 30 days, cooperated fully, and no action had begun and the person had no actual knowledge of an investigation at the time of the report ¹.

Qui tam suits by whistleblowers

Section 3730 lets a private person, called a relator, bring a civil action "for the person and for the United States Government" ². The complaint stays under seal for at least 60 days ². The government may elect to intervene and take over the case. If it declines, the relator may conduct the case ².

The relator's share depends on who carries the case. The table shows the ranges in the statute ².

An employee, contractor or agent who faces retaliation is entitled to relief to make them whole, including reinstatement and double back pay with interest ².
A retaliation claim has a three-year time limit under the statute ².

Who proceeds	Relator share of proceeds
Government intervenes ²	At least 15 percent, not more than 25 percent ²
Government does not intervene ²	Not less than 25 percent, not more than 30 percent ²

What a settlement release says

A Justice Department release on a False Claims Act settlement can include a sentence on liability. In a release dated 24 January 2025 announcing a settlement of US$59,746,277, the Department wrote: "The claims resolved by the settlement are allegations only and there has been no determination of liability." ³

A settlement of this kind is not a finding that the company broke the law. It is not a conviction. Report the amount and the allegations, and quote the liability sentence from the release ³.

Fiscal year 2025 figures

On 16 January 2026 the Justice Department said False Claims Act settlements and judgments "exceeded $6.8 billion" for the fiscal year ending 30 September 2025 ⁴. It reported 1,297 qui tam lawsuits filed in the year ⁴. Settlements and judgments in these and earlier-filed qui tam suits exceeded US$5.3 billion ⁴.

Over US$5.7 billion related to matters involving the health care industry ⁴. The Department reported 401 investigations opened by the government in the year ⁴. The release said a relator "typically receives a portion of the recovery ranging between 15% and 30%" ⁴.

Common questions

Did the company admit fraud in a False Claims Act settlement?

Not in the example on this page. A Justice Department release of 24 January 2025 states that the claims resolved are allegations only and there has been no determination of liability ³. Check the release and settlement agreement for the case.

Is a False Claims Act case criminal?

No. The statute imposes civil liability, a civil penalty plus three times the government's damages ¹.

How much does a whistleblower get?

Between 15 and 25 percent of proceeds if the government proceeds, and between 25 and 30 percent if it does not ².

How much did DOJ recover under the False Claims Act in 2025?

Over US$6.8 billion in settlements and judgments in the fiscal year ending 30 September 2025, according to the Justice Department ⁴.

Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email hello@settlementsexplained.org with the official link.

Sources

What a government settlement means
What civil settlements, DPAs, NPAs, plea agreements and SEC orders say about admission of liability or guilt, with the rules that govern each.
How to find a Justice Department settlement
Where to find official DOJ press releases, resolution agreements, court filings on PACER and SEC litigation releases, and what to check in each.
Plea agreements and settlements compared
The difference between a guilty plea, a deferred prosecution agreement and a civil settlement in U.S. cases, with Rule 11 and Justice Manual rules.
Securiport and Alex Stewart International PPP False Claims Act settlement (2026)
Securiport and Alex Stewart International agreed to pay US$1,816,943 to settle False Claims Act allegations over PPP loans. No liability was determined.