The U.S. Department of Justice announced late last year that it would utilize the False Claims Act, the U.S. government’s primary civil tool to redress false claims for federal funds and property, to bring actions against U.S. government contractors and subcontractors who do not meet the cybersecurity requirements of a particular contract or grant. The U.S. Department of Justice (the “DoJ”) certainly was not bluffing. In the past few months, DoJ has announced the settlement of two False Claims Act cases related to cybersecurity deficiencies or misrepresentations, and more are expected.
As such, it is now imperative that companies executing U.S. government contracts and subcontracts proactively assess their compliance with federal cybersecurity requirements.
DoJ’s Cyber-Fraud Initiative
In October 2021, Deputy Attorney General Lisa O. Monaco announced the launch by the DoJ of a “Civil Cyber-Fraud Initiative,” which she said would hold accountable individuals or entities that put U.S. information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. The Civil Cyber-Fraud Initiative would utilize the False Claims Act (the “FCA”) to pursue cybersecurity-related cases against government contractors, subcontractors and grant recipients.
The False Claims Act
The FCA is the U.S....
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