On October 6, 2021, Deputy Attorney General Lisa O. Monaco announced a new Civil Cyber-Fraud Initiative through which the Department of Justice (DOJ) will utilize the False Claims Act (FCA) as a tool to enforce cybersecurity standards required of federal contractors and grant recipients. Specifically, the DOJ will target companies and individuals that allegedly misrepresent their cybersecurity practices or protocols to win a federal contract or grant or that knowingly submit claims to the government for payment while in violation of regulatory or contractual cybersecurity requirements.
The Biden administration has signaled that it views national cybersecurity as an important enforcement priority. In May 2021, President Biden signed an Executive Order on Improving the Nation's Cybersecurity, stating that "the Federal Government must bring to bear the full scope of its authorities and resources to protect and secure its computer systems." That same month, Deputy AG Monaco ordered a comprehensive cyber review "aimed at developing actionable recommendations to enhance and expand the Justice Department's efforts against cyber threats." The Civil Cyber-Fraud Initiative arose from that review.
In light of the FCA's treble-damages provisions and increased penalties of up to $23,607 per claim, the Act continues to incentivize private citizens, or relators, to bring qui tam (i.e., whistleblower) lawsuits on behalf of the government and collect a hefty relator's share. A classic...
OAKLAND, Calif. — Hobby Lobby dodged unjust enrichment, but not false advertising, claims brought by consumers who say the company’s “limited time” sales are misleading because the discounted items...