On December 19, 2025, the Department of Justice (DOJ) announced a $54.4 million settlement with Ceratizit USA, LLC, a distributor of tungsten carbide products, resolving allegations that the company violated the False Claims Act (FCA) by evading customs duties on products imported from China. This settlement is believed to be the largest ever customs-related FCA resolution, and this high-water mark underscores the government’s heightened enforcement focus on tariff evasion.Continue Reading Record-Setting False Claims Act Settlement Highlights DOJ Commitment to Customs Enforcement
Eleventh Circuit Hears Argument on False Claims Act Qui Tam Constitutionality
On the morning of December 12, 2025, the Eleventh Circuit heard argument in United States ex rel. Zafirov v. Florida Medical Associates, LLC, et al., No. 24-13581 (11th Cir. 2025). This case concerns the constitutionality of the False Claims Act (FCA) qui tam provisions and a groundbreaking September 2024 opinion in which the United States District Court for the Middle District of Florida held that the FCA’s qui tam provisions were unconstitutional under Article II. See United States ex rel. Zafirov v. Fla. Med. Assocs., LLC, 751 F. Supp. 3d 1293 (M.D. Fla. 2024). That decision, penned by District Judge Kathryn Kimball Mizelle, was the first success story for a legal theory that has been gaining steam ever since Justices Thomas, Barrett, and Kavanaugh indicated they would be willing to consider arguments about the constitutionality of the qui tam provisions in U.S. ex rel. Polansky v. Exec. Health Res., 599 U.S. 419 (2023). In her opinion, Judge Mizelle held (1) qui tam relators are officers of the U.S. who must be appointed under the Appointments Clause; and (2) historical practice treating qui tam and similar relators as less than “officers” for constitutional purposes was not enough to save the qui tam provisions from the fundamental Article II infirmity the court identified. That ruling was appealed and, after full briefing, including by the government and a bevy of amici, the litigants stepped up to the plate this morning for oral argument.Continue Reading Eleventh Circuit Hears Argument on False Claims Act Qui Tam Constitutionality
Buying Peace: The Importance of Releasing FCA Liability When Resolving Criminal Allegations of Fraud Against the Government
The facts before the Third Circuit in the recently decided case of Patel v. United States illustrate how parties can put themselves in a bind if they make factual admissions when resolving a criminal case involving fraud on the government while not simultaneously resolving the government’s civil claims under the False Claims Act (FCA) for the same underlying conduct.Continue Reading Buying Peace: The Importance of Releasing FCA Liability When Resolving Criminal Allegations of Fraud Against the Government
Hardening Software Security: DOJ’s Civil Cyber Fraud Settlements Continue to Illumina[te] the Importance of Cybersecurity
On July 31, 2025, the Department of Justice (DOJ) announced that Illumina, Inc. will pay $9.8 million to resolve allegations that it violated the False Claims Act (FCA) by selling genomic sequencing systems with software containing cybersecurity vulnerabilities to federal agencies. This is the first FCA settlement involving claims that a medical manufacturer failed to incorporate adequate product cybersecurity into its software design and development.Continue Reading Hardening Software Security: DOJ’s Civil Cyber Fraud Settlements Continue to Illumina[te] the Importance of Cybersecurity
Ninth Circuit Decision Underscores Increasing False Claims Act Risks to U.S. Importers
On June 23, 2025, the Ninth Circuit issued a long-awaited decision in Island Industries Inc. v. Sigma Corp. affirming a $26M False Claims Act (“FCA”) judgment against the defendant importer. Sigma had appealed the judgment after a jury found the company violated the FCA by failing to pay customs duties owed to U.S. Customs and Border Protection (“CBP”). The Ninth Circuit’s decision addresses an important jurisdictional issue and illustrates the significant financial exposure importers can face under the FCA at a time of increased tariffs and enforcement by the government. Continue Reading Ninth Circuit Decision Underscores Increasing False Claims Act Risks to U.S. Importers
DOJ’s Civil Rights Fraud Initiative Bolsters Threat of False Claims Act Enforcement Under “Anti-DEI” Executive Order
On May 19, 2025, Deputy Attorney General Todd Blanche issued a Memorandum creating the Civil Rights Fraud Initiative that will “utilize the False Claims Act to investigate and . . . pursue claims against any recipient of federal funds that knowingly violates federal civil rights laws.” According to the Memorandum, though racial discrimination has “always been illegal,” the Administration posits that “many corporations and schools continue to adhere to racist policies and preferences—albeit camouflaged with cosmetic changes that disguise their discriminatory nature.” In an effort to prevent federal funds from being used in connection with or support of these purportedly racist policies and preferences, the Initiative will wield the power of the False Claims Act, the government’s most powerful tool to fight fraud, waste, and abuse.Continue Reading DOJ’s Civil Rights Fraud Initiative Bolsters Threat of False Claims Act Enforcement Under “Anti-DEI” Executive Order
Let’s Talk FCA: Growing FCA Risks Amidst “America First” Trade Policy
In this episode, Crowell’s hosts Agustin Orozco and Jason Crawford speak with Crowell attorneys Simeon Yerokun and Katherine Quinn about DOJ’s plan to aggressively use the FCA against illegal foreign trade practices. This episode includes discussion of common areas of FCA enforcement in cases involving allegations of customs fraud, and the hosts address steps that…
Aggressive FCA Enforcement in Customs Calls for Compliance Review
The US Department of Justice intends to “aggressively” enforce the False Claims Act, Deputy Assistant Attorney General Michael Granston said in a speech at the Federal Bar Association’s annual qui tam conference earlier this year. He added that the agency particularly would focus on “illegal foreign trade practices” in conjunction with the Trump administration’s sweeping tariffs.Continue Reading Aggressive FCA Enforcement in Customs Calls for Compliance Review
Recent Deluge of Paycheck Protection Program False Claims Act Settlements
United States Attorneys’ Offices recently announced a number of False Claims Act (FCA) settlements arising out of the Paycheck Protection Program (PPP). These settlements reveal several trends that PPP loan recipients should be aware of.Continue Reading Recent Deluge of Paycheck Protection Program False Claims Act Settlements
The Top FCA Developments of 2024
FY 2024 saw continued growth in False Claims Act enforcement, with a record year for new qui tam and government-initiated actions, and the highest total recovery in three years. Enforcement of pandemic-related fraud and cybersecurity noncompliance increased, and health care, procurement, and small business fraud violations were again priority areas. A groundbreaking opinion from the…