The Department of Justice (DOJ) recently announced an $11.3 million settlement of False Claims Act allegations against a Department of Defense (DOD) contractor administering its TRICARE health insurance program that allegedly falsely certified compliance with DOD cybersecurity contract requirements between 2015 and 2018. The settlement underscores the government’s continued focus on using the False Claims Act (FCA) to enforce cybersecurity-related requirements against companies that contract with the federal government.
DOJ’s press release announcing the settlement does not refer to DOJ’s Civil Cyber Fraud Initiative, but it emphasizes DOJ’s “ongoing efforts” to enforce FCA liability in cybersecurity cases. This suggests that DOJ is committed to using the FCA as a powerful tool to enforce cybersecurity standards and hold government contractors responsible for failures to live up to federal cybersecurity standards.
The press release includes a pointed statement from Brett Shumate, who is currently the acting head of DOJ’s Civil Division and has been nominated for the permanent role, emphasizing that “the Justice Department will continue to pursue federal contractors that place [government] data at risk by failing to meet material cybersecurity requirements in their contracts.”
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