On May 27, 2026, the Department of Justice issued a memorandum directing the Civil Frauds Section to accelerate the review of False Claims Act qui tam actions involving fraud on federally funded benefits programs. DOJ has directed Civil Frauds to attempt to complete its initial review within 60 days and no later than 120 days. DOJ’s memo can be found at the following link: Memo Accelerating Review of Benefits Fraud FCA matters While the directive is consistent with the timing in the seal provisions of the False Claims Act statute, courts regularly extend the seal as a matter of practice to allow DOJ more time to investigate. In many instances, cases remain under seal for years while DOJ performs its investigation.
The new directive also establishes a streamlined protocol under which the DOJ will either permit qui tam relators to proceed with litigation, continue its own investigation on an expedited basis, or dismiss legally deficient claims. Moreover, the directive instructs Civil Frauds to promptly refer new matters to the Criminal Division or the National Fraud Enforcement Division for evaluation of potential parallel enforcement.
Many questions arise as to the practical impact of the directive. For one thing, actual expedition requires that DOJ and its client agencies have the necessary resources. Personnel and other resources have been historically scarce, which is one big reason for protracted DOJ review of qui tam matters in the first place, and there is little reason to believe that the resources pie is getting larger. That said, AI — used appropriately and with appropriate human oversight— can speed review. Additionally, resources can be diverted from other areas where they have historically been focused and prioritized. The directive may also result in DOJ giving less leeway to companies who are targets of investigations as far as deadlines go.
Given the typical trajectory for qui tam investigations, this may be a welcome development. On the other hand, it could result in rushed intervention decisions based on incomplete information and increased declinations. Indeed, the DOJ’s memo affirmatively states that “this protocol will increase the number of benefits fraud matters primarily litigated by relators.” At first blush, this may seem like a welcome development for defendants in qui tam lawsuits, but relators’ counsel have been securing an increasing percentage of recoveries and high value recoveries in declined cases in recent years. A condensed timetable and DOJ pressure may also compromise the ability to complete a fulsome internal investigation.
In short, while there is much promise to this approach, it may also have adverse impacts for all involved. Brooks Law Group will continue to monitor the situation on the ground for our clients and tailor legal strategies as appropriate.