On Monday, June 17, 2024, the Department of Justice (DOJ) announced a settlement in which two U.S. based consulting companies agreed to pay a combined total of $11.3 million to resolve allegations that they violated the False Claims Act (FCA) by failing to comply with cybersecurity requirements in government contracts. According to the DOJ, the […]
False Claims Act
Penn State University Hit With False Claims Act Suit for Alleged Cyber Security Deficiencies
On September 1, 2023, the U.S. District Court for the Eastern District of Pennsylvania unsealed a qui tam False Claims Act (“FCA”) lawsuit (originally filed on October 5, 2022) alleging Penn State University failed to provide “adequate security” for Covered Defense Information, as contractually required by Defense Federal Acquisition Regulation Supplement (“DFARS”) 252.204-7012. DFARS requires […]
Incomplete Cybersecurity Compliance Disclosures May Support Fraud Claim Under the False Claims Act, Federal Court Holds
At the heels of a recent Civil Cyber-Fraud Initiative related to cybersecurity practices and the False Claims Act (FCA), a cybersecurity-related FCA case has survived a motion for summary judgment, teeing up a trial to determine if the defendants’ cybersecurity compliance disclosures were materially incomplete and if any misstatements were knowingly made. On February 1, […]
Department of Justice Announces New Civil Fraud Cybersecurity Enforcement Team
On October 6, 2021, Deputy Attorney General Lisa O. Monaco announced the launch of the Department of Justice’s Civil Cyber-Fraud Initiative. The Department plans to use civil enforcement tools to “pursue…those who are government contractors who receive federal funds, when they fail to follow required cybersecurity standards.” Stating the Department will pursue “very hefty fines,” […]