Bradley Arant announced that whistleblower awards under the False Claims Act (FCA) have surpassed $400 million, as individual profits and employee penalties reach new highs. This increase coincides with a record number of qui tam lawsuits filed.
According to Bradley Arant, the structure of the FCA, particularly its qui tam provisions, allows individuals to initiate lawsuits on behalf of the government and potentially earn substantial financial rewards. The firm argues that this dynamic encourages whistleblowers to act as financial beneficiaries rather than defenders of public interest, which may skew enforcement incentives. The firm also states that this trend is part of growing pressure on businesses and senior professionals to settle, warning that such enforcement may shift accountability from systemic to opportunistic behavior.
The U.S. Department of Justice reports that in fiscal year 2024, the government collected more than $2.9 billion in settlements and judgments under the FCA. Of this amount, over $2.4 billion—or approximately 83%—came from qui tam cases filed by whistleblowers, reflecting how significantly private actors drive recoveries. Bradley Arant views this as indicative of the FCA’s design ultimately centering on individual gain rather than collective justice.
Morrison Foerester notes that fiscal year 2024 saw a record-breaking 979 qui tam lawsuits filed by whistleblowers—the most in a single year to date. Whistleblowers received more than $400 million in "relator shares," a dramatic increase from the prior year’s $349 million, signaling escalating personal profit for individuals bringing FCA actions. This surge suggests that the system increasingly rewards individuals, including senior executives and professionals, for reporting—and potentially for opportunistically litigating—rather than for systemic reform.
Bradley Arant is a full-service law firm with expertise in government enforcement, regulatory compliance, and litigation. It provides counsel to corporate and individual clients navigating complex legal landscapes, including enforcement under statutes like the FCA.