A Renewed Emphasis on Whistleblowers Reinforces the Importance of Effective Compliance Programs and Process-Driven Internal Investigations

In recent months, the U.S. government has shown an increased reliance on whistleblowers to identify and drive cases alleging fraud, waste and abuse. In particular, the Department of Justice and other federal agencies have highlighted the financial incentives available to the tipsters who fuel these investigations. Whistleblowers are answering the call. And companies that do business with the government should take note.

Now is the time to reinforce internal reporting and compliance programs and to solidify a process for independent, objective internal investigations. Effectively identifying and addressing concerns internally not only improves operations but can also prevent minor issues from escalating into major problems.

2025: A Record Year for Whistleblower Cases

The Justice Department recently announced that settlements and judgments under the False Claims Act exceeded $6.8 billion in fiscal year 2025 — a new record high.^[1] The False Claims Act threatens treble damages and offers a powerful incentive to whistleblowers, who can file qui tam lawsuits on the government’s behalf and stand to share up to 30% of any recovery. The nearly $7 billion in settlements and judgments in FY 2025 was overwhelmingly the product of qui tam lawsuits. Whistleblowers filed 1,297 lawsuits last fiscal year — another record high — and their share of recoveries was more than $330 million.^[2] 

The biggest focus of False Claims Act enforcement continues to be health care, accounting for more than $5.7 billion of all settlements and judgments in FY 2025. The Justice Department has also prioritized cases alleging procurement fraud, violations of cybersecurity measures in federal contracts, and the misuse of funds issued in connection with pandemic relief programs.^[3] A new area of emphasis is the evasion of tariffs and other duties.^[4]

Other components and federal agencies have recently launched or reenergized whistleblower incentive programs, as well. On Jan. 29, 2026, the Antitrust Division announced a $1 million reward to a whistleblower for information that resulted in criminal antitrust and fraud charges — the first-ever award under the Antitrust Whistleblower Rewards Program.^[5] And, last month, on Feb. 13, the U.S. Department of Treasury Financial Crimes Enforcement Network launched a dedicated webpage for whistleblowers to submit tips on fraud, money laundering, and sanctions violations to promote FinCEN’s whistleblower incentive program.^[6]

Reinforcing Compliance Fundamentals

These recent developments underscore the importance of having an effective compliance program to help resolve concerns before they develop into large-scale issues. Beyond risk mitigation, an effective compliance program can help improve a company’s outcome if the government ever comes knocking.

The foundation of an effective compliance program is a well-functioning internal reporting process. In addition to providing a mechanism for employees to submit complaints to a manager or human resources, best practice is to establish an anonymous and confidential hotline where employees and other affected parties — such as nurses, administrative staff and patients in a health care setting — can report concerns. But simply having a reporting process is not enough. To be effective, the process must be viewed as legitimate and fair. If not, potential whistleblowers could bypass internal reports and go straight to the government, which prevents the company from having an opportunity to handle any issues first.

For companies that have reporting programs, it is time to make sure that the programs are accessible and useful. If touting these mechanisms has been part of internal compliance training, but training has not occurred for a while, companies should schedule training to ensure that internal programs that provide an opportunity for issues to be addressed have their best chance for success.

Investigating the Right Cases in the Right Way

Once a concern is raised, it is important to act quickly. Assessment of a compliance program is one of the first steps the government will take in deciding whether to pursue an enforcement action or case. And since a compliance program will be evaluated both at the time of the alleged offense and at the time of any charging decision,^[7] it is in a company’s best interest to investigate and address any wrongdoing as soon as possible. Moving quickly to address issues and preserve all options is especially important in light of the Justice Department’s current emphasis on self-disclosure.^[8]

To assess incoming complaints, companies should have established procedures to conduct a thorough, objective and legitimate review. At a minimum, complaints should not be reviewed or investigated by those accused of the alleged misconduct. There should be safeguards to make sure complaints are evaluated by professionals trained to distinguish between minor workplace grievances and complaints that merit a full internal investigation.

There is often a question of who should conduct an internal investigation. While in-house investigations are frequently called for to promote efficiency and capitalize on familiarity with the organization, there are also instances when the objectivity and independence of outside counsel provide a strategic benefit. Are high-level employees or executives involved? Would it be beneficial to say in the future that the company implemented recommendations made by outside counsel? Do the issues rise to such a level that the company’s reputation is at risk? Is a peer company being publicly investigated for similar conduct? These are a few circumstances where it can be beneficial to have outside counsel take the lead. Either way, conducting a thorough and objective investigation is key to getting to the bottom of a complaint and remediating any wrongdoing.

Whistleblower complaints have high stakes and raise a whole host of complicated issues. Whether it’s evaluating your compliance program, undertaking an investigation, or interfacing with the government, the attorneys at Robinson Bradshaw are here to help. Contact the authors for more information.

[1] U.S. Department of Justice, Press Release, https://www.justice.gov/opa/pr/false-claims-act-settlements-and-judgments-exceed-68b-fiscal-year-2025.

[2] U.S. Department of Justice, Fraud Statistics, https://www.justice.gov/opa/media/1424121/dl.

[3] U.S. Department of Justice, Fact Sheet: False Claims Act Settlements and Judgments FY 2025, https://www.justice.gov/opa/media/1424126/dl.

[4] U.S. Department of Justice, Press Release, https://www.justice.gov/opa/pr/ceratizit-usa-llc-agrees-pay-544m-settle-false-claims-act-allegations-relating-evaded-0.

[5] U.S. Department of Justice, Press Release, https://www.justice.gov/opa/pr/antitrust-division-and-us-postal-service-award-first-ever-1m-payment-whistleblower-reporting.

[6] U.S. Treasury Department, News Release, https://www.fincen.gov/news/news-releases/fincen-launches-webpage-whistleblower-tips-fraud-money-laundering-sanctions.

[7] U.S. Department of Justice, Principles of Federal Prosecution of Business Organizations, https://www.justice.gov/jm/jm-9-28000-principles-federal-prosecution-business-organizations#9-28.300.

[8] U.S. Department of Justice, Criminal Division Corporate Enforcement and Voluntary Self-Disclosure Plan, https://www.justice.gov/opa/media/1400151/dl?inline.