On June 18, 2026, the U.S. Department of Justice announced that LOGZONE Inc., a Huntsville, Alabama defense contractor, agreed to pay $507,144 to resolve allegations under the False Claims Act (FCA) that it knowingly failed to comply with cybersecurity requirements in two contracts with the Department of the Navy. The resolution is the latest in a string of cyber-fraud enforcement actions targeting federal contractors that certify compliance with cybersecurity controls they have not, in fact, implemented.
The settlement resolves allegations that, from May 2021 to March 2025, LOGZONE submitted false or fraudulent claims for payment on two Navy contracts for which it had not satisfied the contracts’ cybersecurity requirements. According to DOJ, LOGZONE allegedly failed to implement certain security controls in NIST Special Publication 800-171 that, if left unimplemented, could lead to significant exploitation of the system or exfiltration of sensitive defense information.
The deficiencies surfaced when the Defense Contract Management Agency (DCMA) assessed LOGZONE’s implementation of the NIST SP 800-171 controls. LOGZONE received a score of -170, near the low end of the possible range of -203 to 110—a result the government treated as evidence that the contractor was far from the compliance posture its contracts required. The settlement agreement resolves the matter; the claims are allegations only, and there has been no determination of liability.
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