DOJ Obtains Cybersecurity Related False Claims Act Settlements
p25ppppFind Your Next Job pp
ppThe Department of Justice DOJ recently obtained several cybersecurityrelated False Claims Act FCA settlements totaling more than 50 million dollars Collectively these settlements reflect a clear message Cybersecurity is an enforcement priority for the second Trump administration and any organization that contracts with the federal government is a potential targetppOn June 6 2025 President Trump signed Executive Order 14306 titled Sustaining Select Efforts to Strengthen the Nations Cybersecurity and Amending Executive Order 13694 and Executive Order 14144 The executive order itself contains a series of amendments as well as some directives aimed at strengthening the nations cybersecurity and blunting the efforts of foreign nations and criminals from conducting cyber campaigns against the United States EO No 14306 90 Fed Reg 24723 June 5 2025 The accompanying fact sheet provides additional highlights and reemphasizes the administrations focus on cybersecurityppWhile that focus on cybersecurity may be new the administration has turned to an old and reliable tool to advance this enforcement priority the FCAppIn the past nine months the DOJ has achieved settlements in several cybersecurity cases under the FCA covering a range of conduct and industries Among others they includeppOn February 18 2025 the DOJ announced that Health Net Federal Services LLC HNFS and parent company Centene Corporation settled with the government for 11 million for allegations that HNFS who contracted with the Department of Defense falsely certified compliance with cybersecurity requirements The covered conduct occurred between 2015 and 2018 Centene Corporation acquired HNFS in 2016ppOn July 31 2025 the DOJ announced that aerospace company Aero Turbine Inc and the private equity firm Gallant Capital Partners LLC reached a 175 million settlement with the government for failing to comply with the cybersecurity requirements in the contract between Aero Turbine and the Department of the Air Force The government also alleged that the companies failed to control the flow of information to unauthorized foreign personnel Both companies received credit for their disclosure and cooperation under 44112 of the Justice Manual which describes the factors to be considered and the credit given for entities or individuals who voluntarily selfdisclose conduct that could give rise to FCA liabilityppOn July 31 2025 the DOJ announced it had reached a 98 million settlement with Illumina Inc to resolve allegations that the biotech company sold a defunct and vulnerable cybersecurity genomic sequencing system to the governmentppOn September 30 2025 the DOJ announced that the Georgia Tech Research Corporation a nonprofit government contractor agreed to settle FCA allegations for 875000 The government alleged that the nonprofit failed to meet cybersecurity requirements set forth in its contracts with government agenciesppAssistant Attorney General Brett A Shumate with DOJs Civil Division stated Together with DoD and other agency partners the Department of Justice will continue to pursue and litigate violations of cybersecurity requirements to hold contractors accountable when they violate their cybersecurity commitments These comments forecast the Trump administrations continued reliance on the timetested False Claims Act to deal with its new cybersecurity enforcement priorityppThere are several notable takeaways from these settlementspp
ppMore Upcoming Eventspp ppSign Up for any or all of our 25 Newsletterspp ppYou are responsible for reading understanding and agreeing to the National Law Reviews NLRs and the National Law Forum LLCs Terms of Use and Privacy Policy before using the National Law Review website The National Law Review is a freetouse nologin database of legal and business articles The content and links on wwwNatLawReviewcom are intended for general information purposes only Any legal analysis legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice No attorneyclient or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms attorneys or other professionals or organizations who include content on the National Law Review website If you require legal or professional advice kindly contact an attorney or other suitable professional advisor ppSome states have laws and ethical rules regarding solicitation and advertisement practices by attorneys andor other professionals The National Law Review is not a law firm nor is wwwNatLawReviewcom intended to be a referral service for attorneys andor other professionals The NLR does not wish nor does it intend to solicit the business of anyone or to refer anyone to an attorney or other professional NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us ppUnder certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements Attorney Advertising Notice Prior results do not guarantee a similar outcome Statement in compliance with Texas Rules of Professional Conduct Unless otherwise noted attorneys are not certified by the Texas Board of Legal Specialization nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional CredentialsppThe National Law Review National Law Forum LLC 2070 Green Bay Rd Suite 178 Highland Park IL 60035 Telephone 708 3573317 or tollfree 877 3573317 If you would like to contact us via email please click hereppCopyright 2025 National Law Forum LLCp
ppThe Department of Justice DOJ recently obtained several cybersecurityrelated False Claims Act FCA settlements totaling more than 50 million dollars Collectively these settlements reflect a clear message Cybersecurity is an enforcement priority for the second Trump administration and any organization that contracts with the federal government is a potential targetppOn June 6 2025 President Trump signed Executive Order 14306 titled Sustaining Select Efforts to Strengthen the Nations Cybersecurity and Amending Executive Order 13694 and Executive Order 14144 The executive order itself contains a series of amendments as well as some directives aimed at strengthening the nations cybersecurity and blunting the efforts of foreign nations and criminals from conducting cyber campaigns against the United States EO No 14306 90 Fed Reg 24723 June 5 2025 The accompanying fact sheet provides additional highlights and reemphasizes the administrations focus on cybersecurityppWhile that focus on cybersecurity may be new the administration has turned to an old and reliable tool to advance this enforcement priority the FCAppIn the past nine months the DOJ has achieved settlements in several cybersecurity cases under the FCA covering a range of conduct and industries Among others they includeppOn February 18 2025 the DOJ announced that Health Net Federal Services LLC HNFS and parent company Centene Corporation settled with the government for 11 million for allegations that HNFS who contracted with the Department of Defense falsely certified compliance with cybersecurity requirements The covered conduct occurred between 2015 and 2018 Centene Corporation acquired HNFS in 2016ppOn July 31 2025 the DOJ announced that aerospace company Aero Turbine Inc and the private equity firm Gallant Capital Partners LLC reached a 175 million settlement with the government for failing to comply with the cybersecurity requirements in the contract between Aero Turbine and the Department of the Air Force The government also alleged that the companies failed to control the flow of information to unauthorized foreign personnel Both companies received credit for their disclosure and cooperation under 44112 of the Justice Manual which describes the factors to be considered and the credit given for entities or individuals who voluntarily selfdisclose conduct that could give rise to FCA liabilityppOn July 31 2025 the DOJ announced it had reached a 98 million settlement with Illumina Inc to resolve allegations that the biotech company sold a defunct and vulnerable cybersecurity genomic sequencing system to the governmentppOn September 30 2025 the DOJ announced that the Georgia Tech Research Corporation a nonprofit government contractor agreed to settle FCA allegations for 875000 The government alleged that the nonprofit failed to meet cybersecurity requirements set forth in its contracts with government agenciesppAssistant Attorney General Brett A Shumate with DOJs Civil Division stated Together with DoD and other agency partners the Department of Justice will continue to pursue and litigate violations of cybersecurity requirements to hold contractors accountable when they violate their cybersecurity commitments These comments forecast the Trump administrations continued reliance on the timetested False Claims Act to deal with its new cybersecurity enforcement priorityppThere are several notable takeaways from these settlementspp
ppMore Upcoming Eventspp ppSign Up for any or all of our 25 Newsletterspp ppYou are responsible for reading understanding and agreeing to the National Law Reviews NLRs and the National Law Forum LLCs Terms of Use and Privacy Policy before using the National Law Review website The National Law Review is a freetouse nologin database of legal and business articles The content and links on wwwNatLawReviewcom are intended for general information purposes only Any legal analysis legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice No attorneyclient or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms attorneys or other professionals or organizations who include content on the National Law Review website If you require legal or professional advice kindly contact an attorney or other suitable professional advisor ppSome states have laws and ethical rules regarding solicitation and advertisement practices by attorneys andor other professionals The National Law Review is not a law firm nor is wwwNatLawReviewcom intended to be a referral service for attorneys andor other professionals The NLR does not wish nor does it intend to solicit the business of anyone or to refer anyone to an attorney or other professional NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us ppUnder certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements Attorney Advertising Notice Prior results do not guarantee a similar outcome Statement in compliance with Texas Rules of Professional Conduct Unless otherwise noted attorneys are not certified by the Texas Board of Legal Specialization nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional CredentialsppThe National Law Review National Law Forum LLC 2070 Green Bay Rd Suite 178 Highland Park IL 60035 Telephone 708 3573317 or tollfree 877 3573317 If you would like to contact us via email please click hereppCopyright 2025 National Law Forum LLCp
