False Claims Act Settlements and Judgments Surpass $6.8 Billion in Fiscal Year 2025

The federal government recovered more than $6.8 billion through False Claims Act settlements and judgments during fiscal year 2025, setting a new all-time record. The announcement from the U.S. Department of Justice (DOJ) highlights the continued expansion of enforcement efforts aimed at uncovering fraud involving federal funds, particularly in health care, government contracting, and trade compliance.

For employees who witness fraud in the workplace, these numbers send a clear message that whistleblower reports remain one of the most effective ways the government uncovers wrongdoing. For employers and contractors, the figures show that enforcement activity is not slowing down.

At Lebau & Neuworth, we closely follow False Claims Act developments because of the direct impact on employees who step forward to report misconduct. This year’s results reflect a landscape where whistleblowers play a central role in protecting public funds.

Record-Breaking False Claims Act Recoveries in Fiscal Year 2025

The $6.8 billion recovered in fiscal year 2025 represents the largest single-year total in the history of the False Claims Act. Since Congress strengthened the statute in 1986, recoveries now exceed $85 billion nationwide.

Key enforcement data from the past year includes:

1,297 qui tam lawsuits filed, the highest number ever recorded
401 new government investigations opened
More than $5.3 billion recovered in whistleblower-led cases, including actions filed in earlier years

These figures reflect an aggressive approach by the DOJ toward identifying fraud and holding organizations accountable for false claims involving federal money.

Health Care Fraud Drives the Majority of False Claims Act Settlements

Health care enforcement once again accounted for the largest share of recoveries. Of the total $6.8 billion obtained in fiscal year 2025, over $5.7 billion stemmed from health care-related matters.

These cases involved alleged misconduct affecting programs such as:

Medicare
Medicaid
TRICARE, which serves military members and their families

Beyond recovering funds, enforcement in this area often addresses practices that expose patients to unnecessary treatments, improper billing, or misleading reporting. The DOJ continued focusing on managed care organizations, prescription drug practices, and claims involving medically unnecessary services.

Many of these cases also resulted in additional recoveries for state Medicaid programs, extending the financial impact beyond federal losses alone.

Government Contracting, Cybersecurity, and Pandemic Fraud Enforcement

False Claims Act enforcement extended well beyond health care in fiscal year 2025. The government pursued cases involving fraud tied to federal procurement, grants, and loan programs.

Particular attention was given to:

Fraud affecting military procurement and defense contracts
Contractors that failed to follow required cybersecurity standards
Improper claims related to pandemic relief programs

Fraud in government contracting does more than waste taxpayer dollars. It can undermine public trust, affect national security, and place service members and first responders at risk. These enforcement efforts show that compliance obligations tied to federal funds continue to receive close scrutiny.

Trade Fraud and Customs Duty Evasion Under the False Claims Act

The DOJ also expanded its focus on trade fraud through the launch of a cross-agency Trade Fraud Task Force. These cases target companies that allegedly evade tariffs and customs duties by misrepresenting:

The type of goods imported
The country of origin
Product classifications used to calculate duties

By pursuing these matters under the False Claims Act, the government aims to recover lost revenue while protecting domestic industries and consumers from unfair trade practices.

Whistleblowers Drive False Claims Act Enforcement

Whistleblower lawsuits, known as qui tam actions, remain the backbone of False Claims Act enforcement. In fiscal year 2025, whistleblowers filed more cases than in any previous year, breaking a record set just one year earlier.

Under the False Claims Act, individuals who report fraud on behalf of the government may receive 15% to 30% of the recovered funds when a case succeeds. These financial incentives exist to encourage employees, contractors, and insiders to come forward when they uncover misconduct.

Qui tam cases may proceed with government involvement or, in some situations, continue independently. The high level of recoveries tied to whistleblower cases underscores how often insider reporting leads to meaningful outcomes.

What This Means for Employees and Whistleblowers in Maryland

The fiscal year 2025 enforcement results reinforce that employees play a central role in exposing fraud tied to federal programs. Many whistleblowers first identify issues while performing everyday job duties, reviewing billing practices, handling compliance tasks, or managing government contracts.

Employees who report misconduct often face workplace retaliation, including termination, demotion, or harassment. Federal law provides protections for whistleblowers, but navigating these claims requires careful planning and experienced legal guidance.

How Lebau & Neuworth Supports Whistleblowers and Employees

False Claims Act cases demand attention to detail, discretion, and a clear understanding of employee rights. Our Baltimore-based employment attorneys work with individuals who raise concerns about fraud, misuse of public funds, and employer misconduct tied to government programs.

If you have information about fraudulent practices or believe you have faced retaliation for reporting wrongdoing, the experienced team at Lebau & Neuworth can help you evaluate your options. We serve employees throughout Maryland and Washington, D.C., and remain committed to protecting careers, livelihoods, and workplace dignity.

Contact Lebau & Neuworth today to discuss your situation and learn how we can stand up for your rights.

What Qualifies As Wrongful Termination In Maryland?

Losing your job is never easy, but if you suspect your termination wasn't fair, you have more options than you think. Wrongful termination occurs when an employer violates state or federal employment laws, such as dismissing an employee for discriminatory reasons, retaliating against whistleblowers, or failing to honor employment agreements. Maryland employees are protected by laws that uphold their rights in the workplace, and understanding these laws is the first step toward justice.

If you believe your firing was unjust, the experienced team at Lebau & Neuworth is ready to fight for your rights. Contact us today to have a strong advocate on your side. With a simple and free consultation about your case, you can take the first steps toward holding your employer accountable.

What Is Considered Wrongful Termination in Maryland?

Wrongful termination in Maryland occurs when an employer dismisses an employee in violation of state or federal employment laws. This can include firing someone based on discriminatory factors such as race, gender, age, or religion. Retaliation against employees who report unsafe working conditions, harassment, or other workplace violations is another example of wrongful termination. Employers who breach the terms of a written or implied employment contract also open themselves up to liability for unjustly letting employees go. These actions are not only violations of the law but betray the trust employees place in their employers.

Maryland employees who believe they’ve been wrongfully terminated have the right to seek justice. By consulting with an experienced employment attorney, workers can get clarity about their situation, understand their legal protections, and pursue fair remedies. Legal support empowers employees to hold their employers accountable and helps them rebuild their lives after an unjust dismissal.

Legal Grounds for Wrongful Termination Claims

Understanding the legal grounds for wrongful termination claims is crucial for Maryland employees who suspect their dismissal was unjust. Wrongful termination occurs when an employer violates specific employment laws while firing an employee, depriving them of their rights in the workplace. To identify whether a claim is valid, employees should look for key legal violations that might have occurred during their termination. Maryland, like other states, offers protections under both state and federal laws to ensure workers are treated fairly.

Here are some common legal grounds for wrongful termination claims in Maryland:

Discrimination-based termination tied to race, gender, age, religion, disability, or other protected characteristics.
Retaliation for reporting workplace violations, such as harassment, unsafe conditions, or illegal practices.
Firing in violation of employment contracts, including written, implied, or oral agreements.
Termination for taking protected leave, such as time off under the Family and Medical Leave Act (FMLA) or state laws.
Dismissal in violation of public policy, such as firing someone for refusing to commit an illegal act or for serving on a jury.

Understanding the legal grounds for wrongful termination equips Maryland employees with the knowledge to evaluate their situation and determine if their dismissal violated state or federal laws. If the circumstances of your termination appear to align with one or more of these legal violations, it’s a clear signal to consult with an experienced employment attorney who can provide guidance and pursue justice on your behalf.

Maryland-Specific Laws Affecting Wrongful Termination

While federal laws such as the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Family and Medical Leave Act (FMLA) set essential baselines, state-specific statutes like the Maryland Fair Employment Practices Act (FEPA) go further to protect workers. FEPA not only enforces prohibitions against discrimination based on race, gender, age, or disability but also addresses retaliation more comprehensively, ensuring employees can safely report workplace violations without fear of losing their job.

Additionally, Maryland’s Healthy Working Families Act strengthens these protections by guaranteeing eligible employees access to paid sick leave, a benefit not fully covered under federal law. These state-level laws bridge gaps in federal legislation, reinforcing workers’ rights in critical areas like discrimination, retaliation, and access to protected leave of absence. With these added layers of protection, Maryland employees can feel more confident when challenging unjust terminations and holding their employers accountable for violating their rights.

How to Prove Wrongful Termination in Maryland

Proving wrongful termination in Maryland relies on building a strong, evidence-based case. This process involves collecting documentation that directly supports your claims, such as records or communications showing discrimination, instances of retaliation, or breaches of an employment contract. It’s essential to present a coherent narrative of events that links your termination to unlawful motives or actions by your employer.

By connecting the evidence to legal violations, you can demonstrate that your dismissal was not justified, strengthening your position and creating a compelling case for claims of wrongful termination. Attorneys can help you gather the necessary documentation, build a strong case, and understand the specific laws that apply to your situation. They will guide you step-by-step, from evaluating your claim to presenting evidence in court or during negotiations.

When arguing a wrongful termination claim, judges consider several key factors. Understanding what needs to be demonstrated can strengthen your case. These factors often include:

Evidence of discrimination based on a protected characteristic, such as race, gender, or age.
Proof of retaliation for reporting violations, such as unsafe working conditions or harassment.
Clear documentation of an employment contract and proof that the terms were violated.
Records showing termination after taking legally protected leave, such as family or medical leave.
Any related communications, including emails or performance reviews, that contradict the stated reason for your termination.

It’s not just about losing your paycheck; it can affect your confidence, damage your professional reputation, and make finding a new position more challenging. The financial strain, paired with the frustration of being treated unfairly, can leave you wondering what to do next. Talking to a wrongful termination attorney can help you decide if legal action is right for your situation and guide you through the process.

What to Do If You Believe You Were Wrongfully Terminated

If you believe you’ve been wrongfully terminated, it’s important to remember that your efforts and dedication as an employee don’t go unnoticed, and your rights matter. Maryland has specific protections for workers, and these rules are meant to ensure that employers don’t misuse their power. If you think you were dismissed for an unlawful reason, taking some of these steps can help you stand up for yourself and seek a fair resolution.

Speak with an experienced employment attorney who can evaluate your case, explain your options, and guide you through the legal process.
Review your employer’s policies and your employment contract for any violations.
Document everything that might support your claim, such as emails, texts, performance reviews, or witness statements.
Write down the details of your termination, including what was said, who was involved, and the justification your employer provided.
Contact the Maryland Department of Labor or a relevant agency for guidance.

If you believe you were wrongfully terminated, reaching out to Lebau & Neuworth for a free consultation is an important first step. During the consultation, you’ll have the opportunity to share your experience and learn more about your legal options. Our attorneys can help you determine whether your case qualifies as wrongful termination and provide clarity on the support you may need. Taking advantage of this free resource can help you make informed decisions about how to proceed.

Contact Lebau & Neuworth for Legal Support

Being wrongfully terminated is more than just losing a job; it can feel unfair, confusing, and like a betrayal of the hard work you’ve put in. Depending on your situation, navigating the next steps may seem challenging; that’s where Lebau & Neuworth comes in. Our experienced legal team understands the complexities of employment law and is committed to advocating for workers like you who deserve better. If you believe your rights were violated, contacting Lebau & Neuworth can be the first step toward regaining a sense of stability and fairness. We’re here to listen, help build your case, and fight for the resolution you deserve.

Lebau Wins Whistleblower Complaint Against Department Of Veterans Affairs

Attorney Steve Lebau recently had the honor of representing Joe Stenaka, a dedicated career public servant and distinguished Veteran, in a whistleblower complaint against his supervisor at the U.S. Department of Veterans.

FedScoop broke the story, reporting:

"A Department of Veterans Affairs watchdog has dismissed three misconduct allegations against a top federal IT official brought by the agency’s former chief information security officer.

"According to two copies of a January report obtained exclusively by FedScoop, the VA’s Office of Accountability and Whistleblower Protection (OAWP) did not substantiate three complaints filed against Joseph Stenaka in October 2020 by Paul
Cunningham.

"Stenaka at the time of the complaint was executive director for information security operations within the department’s Office of Information and Technology (OIT), and in that role he reported directly to Cunningham. Both Cunningham and Stenaka have since
departed from their roles at the VA. …

"The allegations filed against Stenaka came just a month after the IT official submitted a protected whistleblower complaint in which he raised concerns about negotiations between Cunningham and software company Splunk over a cloud computing contract.
…

"In his whistleblower complaint at the time, Stenaka alleged that Cunningham gave up to 10 terabytes of perpetual licenses from an existing Splunk Perpetual Contract for a discount on a future Splunk SaaS cloud contract and received only 'pennies on the
dollar' for what the Splunk contract was worth.

"Stenaka suggested Cunningham’s comfortable relationship with Mark Jarek, the director of business development and strategy at Splunk, gave rise to inappropriate negotiations with Splunk and there was concern the VA would lose up to $170 million due to this.

"The U.S. Code forbids personnel action against any federal employee who discloses information in a bid to stop gross mismanagement, gross waste of funds, abuse of authority, or to highlight a substantial and specific danger to public health or safety."

As a result of this win, Mr. Stenaka’s personnel file remains unblemished and accurately reflects his stellar work. He was also awarded compensatory damages and attorney fees.

For the full story, click here.

If you might be the victim of whistleblower retaliation, the attorneys at Lebau & Neuworth might be able to help; contact us (410) 296-3030 or lebauneuworth.com/contact-us.

Presentation on The False Claims Act Highlights Medical Negligence

Lebau & Neuworth partner Richard Neuworth made a presentation on the important topic of Medical Negligence and The False Claims Act at the 2022 National American Association for Justice Convention.

His presentation included the significant overlap between medical negligence and the False Claims Act, which is now more important than ever in light of the COVID-19 pandemic.

The amount of federal spending associated with the pandemic, particularly in health care, has risen significantly in terms of spending and the areas associated with possible False Claims Act claims.

Lebau and Neuworth is well-equipped to assist you with any possible False Claims Act matter; if you need legal assitance, contact us at (410) 296-3030 or lebauneuworth.com/contact-us.

False Claims Act Settlements and Judgments Exceed $5.6 Billion in FY 2021

Lebau & Neuworth attorneys have represented whistleblowers who work for government contractors, hospitals, healthcare companies and non-profits and were terminated from their jobs for objecting to and/or complaining about their employers’ unlawful conduct. In 2018, we represented whistleblowers who obtained more than $13 million from a for-profit college for defrauding the government by changing students’ test scores and enrolling students with invalid high school ‘diplomas’ ordered online.

A powerful tool to assist our clients is the federal False Claims Act.

In 1986, Congress strengthened the Act by increasing incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government. These whistleblower, or qui tam, actions comprise a significant percentage of the False Claims Act cases that are filed. If the government prevails in a qui tam action, the whistleblower, also known as the relator, typically receives a portion of the recovery ranging between 15% and 30%. Whistleblowers filed 598 qui tam suits in fiscal year 2021, and this past year the department reported settlements and judgments exceeding $1.6 billion in these and earlier-filed suits.

The Justice Department obtained more than $5.6 billion in settlements and judgments from civil cases involving fraud and false claims against the government in the fiscal year ending September 30, 2021 – the second-largest annual total in False Claims Act history and the largest since 2014. Settlement and judgments since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $70 billion.

Of the more than $5.6 billion in settlements and judgments reported by the Department of Justice this past fiscal year, over $5 billion relates to matters that involved the healthcare industry, including drug and medical-device manufacturers, managed-care providers, hospitals, pharmacies, hospice organizations, laboratories and physicians. The amounts included in the $5 billion reflect recoveries arising from only federal losses, and, in many of these cases, the department was instrumental in recovering additional amounts for state Medicaid programs.

If you or someone know needs whistleblower protection, please do not hesitate to call Lebau & Neuworth at (410) 296-3030 or email us at lebauneuworth.com/contact-us.

False Claims Act Celebrates Its 35th Anniversary as Powerful Weapon for Whistleblowers

The Federal False Claims Amendments Act (FCA), which was signed into law on October 27, 1986, by President Ronald Reagan, just celebrated its 35th anniversary.

The FCA creates liability for fraud against the government. Specifically, the FCA allows the government to recover fraudulently earned funds from any person who knowingly submits, or causes another person to submit, a false claim to the government to get a false claim paid by the government. Violations of the FCA come with a civil penalty of between $11,181 and $22,363 for each false claim, and three times the amount of the government’s actual damages.

The attorneys at Lebau & Neuworth have handled numerous FCA cases on behalf of whistleblowers, with allegations of fraud including overcharging Medicare for services performed, charging Medicare for services that were never performed or performed by unqualified practitioners, fraudulently obtaining Title IV education funds, and fraud committed in obtaining military contracts.

The FCA incentivizes individuals with knowledge about fraud to come forward by including a whistleblower – or “qui tam” – provision that provides whistleblowers with a financial reward for successful FCA lawsuits. The FCA allows for whistleblower rewards between 15% and 25% of the amount recovered as a result of successful lawsuits.

That amount can be significant when millions of dollars are recovered due to false claim. For example, the Department of Justice (D.O.J.) obtained more than $2.2 billion in settlements and judgments from civil cases involving fraud and false claims against the government in the fiscal year ending Sept. 30, 2020,

Whistleblowers are also protected by the FCA because “qui tam” cases are filed confidentially in camera and under seal. That means the complaint and its contents must be kept confidential until the seal is lifted and the complaint is not served on the defendant. This protects both the whistleblower and the integrity of the D.O.J. investigation of the allegations.

If you have information about potential false claims, including Medicare fraud, the attorneys at Lebau & Neuworth may be able to help. We are experienced with FCA claims, so contact us (410) 296-3030 or lebauneuworth.com/contact-us.