×
Friday, May 15, 2026

Aerojet Rocketdyne Case False Claims Act for Cybersecurity Fraud - The National Law Review

proceeded to trial in the Eastern District of California. This first-of-its-kind case—wherein a qui tam relator attempted to hold his former employer accountable using the False Claims Act for its alleged cybersecurity fraud—was certain to be a bellwether test case for cyber-related FCA liability. Read on to learn more below, and what it may mean in the realm of cybersecurity and data privacy going forward.

Aerojet Rocketdyne was also to be a bellwether for the Biden administration’s new cybersecurity initiative. If you recall, the Department of Justice announced in October 2021 the Civil Cyber-Fraud Initiative and its plans to use the False Claims Act (FCA) to identify and deter cyber incidents that put sensitive and critical government information at risk.[1] For those unfamiliar with the FCA, it is a law used to impose liability on persons or entities that knowingly defraud government programs and misuse taxpayer funds. The FCA allows private parties—i.e., whistleblowers, known as “relators”—to bring cases on the government’s behalf, and seek a recovery of government funds. The FCA also permits the government to recover three times its damages, as well as statutory penalties for each false claim. Further, if the recovery is successful, the relator is entitled to a share of these proceeds.

Given that the federal government is one of the largest purchasers of cyber products and services, the DOJ expects whistleblowers to play a significant role in implementing the Civil...



Read Full Story: https://www.natlawreview.com/article/aerojet-rocketdyne-cybersecurity-trial-a...