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ARTICLE · 23 JULY 2014

Contractors Continue To Pay Millions In False Claims Act Settlements

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Investigations under the False Claims Act (FCA) represent one of the most significant financial threats facing government contractors today.

United StatesGovernment, Public Sector
Christian Nagel
Christian Nagel

Investigations under the False Claims Act (FCA) represent one of the most significant financial threats facing government contractors today. Recent reports from the Department of Justice indicate that defense contractors in particular are targeted by FCA claims more than almost any other industry.

Last year, DOJ reported more than $890 million in payments by government contractors. The agency has continued to aggressively pursue settlements in 2014 – reporting settlements for amounts ranging from $2.7 million to $6.5 million. These figures reflect only a small percentage of the contractors actively engaged in responding to FCA claims, and they do not take into account those companies' tremendous productivity and legal costs.

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