Federal officials settled claims involving alleged cybersecurity failures on Navy contracts in Alabama.
The Alabama defense contractor LOGZONE Inc., based in Huntsville, has agreed to pay more than half a million dollars after federal officials said the company failed to meet cybersecurity rules tied to military contracts. LOGZONE Inc. will pay $507,144 to settle these claims under the False Claims Act. The U.S. Department of Justice (DOJ) announced the agreement on June 18, saying the company knowingly failed to follow requirements included in contracts with the Department of the Navy.
Federal officials said the case centers on two Navy contracts that required LOGZONE to protect sensitive government information using specific security measures. According to the DOJ, the company did not fully put those protections in place while continuing to seek payment under the contracts. The alleged failures took place in the four-year span from May 2021 through March 2025, and during that time, LOGZONE was expected to comply with security standards outlined in National Institute of Standards and Technology (NIST) guidebook, Special Publication 800-171. Those rules are designed to help companies protect sensitive information handled on behalf of the federal government.
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