BIRMINGHAM, Ala. (WBRC) - An Alabama-based defense contractor has agreed to settle after it was found they did not comply with federal cybersecurity requirements.

The Department of Justice (DOJ) announced Thursday that LOGZONE, Inc., of Huntsville, will pay $507,144 in response to being liable under the False Claims Act.

According to the DOJ, the settlement resolves allegations that LOGZONE had not complied with Navy contracts’ cybersecurity requirements while submitting claims for payment.

Between May 2021 and March 2025, the company is accused of having not implemented certain security standards that could lead to exploitation of the system of exfiltration of sensitive defense information.

US Attorney Phillip W. Williams, Jr., for the Northern District of Alabama said protection of sensitive defense information is critical to national security.

“Adherence to the cybersecurity provisions of contracts with the federal government must be a priority for all contractors, and this enforcement action should serve as a reminder of that.”

President Donald trump issued an executive order in March to launch the Task Force to Eliminate Fraud while the DOJ established the National Fraud Enforcement Division to battle what the administration says is fraud in federal programs.

Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division also emphasized the importance of following cybersecurity guidelines and the DOJ’s role in enforcing those requirements.

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