The False Claims Act in 2023: A Government Enforcement Update
In 2023, the government and whistleblowers were party to 543 settlements and judgments — the highest number in a single year — collecting over $2.68 billion. After announcing its Civil Cyber-Fraud Initiative in October 2021, the Justice Department proved that the initiative is dedicated to using the FCA as a mechanism to hold federal contractors accountable who fail to follow federal cybersecurity requirements. Settlements in 2023 included allegations against companies for their failure to provide secure systems to customers, failure to provide secure hosting of personal information, and failure to properly maintain, patch, and update software systems. The Justice Department has made clear that cybersecurity is one of its key enforcement priorities in 2024 and moving forward, meaning all federal contractors must be particularly mindful of federal cybersecurity requirements. To keep you apprised of the current enforcement trends and the status of the law, Bradley’s Government Enforcement and Investigations Practice Group is pleased to present the False Claims Act: 2023 Year in Review, our 12th annual review of significant FCA cases, developments and trends.