WEBVTT

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The U.S. Department of Justice
is doubling down

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on False Claims Act enforcement.

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What do companies doing business
with the U.S. government

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need to know about the evolving
FCA enforcement landscape?

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The False Claims Act is the U.S. government’s primary tool

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to investigate allegations
of fraud by government contractors.

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And from the outset of President Trump’s term,

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the U.S. Department of Justice
made clear

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that it would continue prosecuting
False Claims Act cases

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and defending the constitutionality

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of its qui tam whistleblower provisions.

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2025 was a record-setting year
for FCA enforcement,

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with the highest ever total recoveries

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at nearly $7 billion
and 1,700 new matters.

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That means 33 new FCA cases
were filed every week last year.

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And that same is expected this year.

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The Deputy Assistant Attorney General

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for the commercial branch
recently warned

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that heightened FCA enforcement

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is, quote, the new normal.

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What companies need to know is,
like those before it,

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this Administration is using the FCA
to advance its priorities.

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DOJ continues to focus on healthcare
fraud, cybersecurity,

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and small business
and Covid-19 pandemic programs.

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It has also introduced
new FCA enforcement priorities

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such as DEI programs and tariff fraud,

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signaling an aggressive enforcement shift on both fronts.

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As to DEI, the government
is not waiting

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for the forthcoming certification

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that will require all contractors
to affirmatively certify

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compliance with
antidiscrimination laws.

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DOJ has already issued broad subpoenas

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to dozens of companies and universities

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investigating their DEI programs
and hiring practices,

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and DOJ is fast-tracking

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the review of all whistleblower cases
alleging discrimination.

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On the tariff front, DOJ launched

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a cross-agency
Trade Fraud Task Force

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to enforce custom rules
using both the FCA and criminal laws.

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They’re focusing on
country-of-origin issues,

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misclassification of goods,

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double-invoicing, and port shopping.

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The Administration has vowed

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to regularly use its statutory
authority to dismiss meritless

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FCA cases filed by whistleblowers,

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which is welcome news for FCA defendants.

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But even if government dismissals
increase, that will likely cover only

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a small portion of the predicted
1,700 new FCA cases

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that will be filed this year.

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It’s important to work with counsel
to, number one, understand

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the particular enforcement risks
facing your industry and company,

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number two, invest in proactive
and effective compliance frameworks,

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and, number three,

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design right-sized risk
assessments and audits.

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I’m Anne Robinson, a partner at Latham & Watkins,

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and I advise clients across industries in FCA investigations,

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litigation, and compliance.

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Latham’s deep FCA bench brings
substantive expertise,

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government experience, and proven litigation capabilities

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to help clients manage risk

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and craft sophisticated
legal strategies

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to successfully resolve FCA matters.