A recent settlement between the United States Department of Justice (DOJ) and Georgia Tech Research Corporation (GTRC), a research affiliate of the Georgia Institute of Technology (Georgia Tech), shows that the DOJ remains committed to using the False Claims Act (FCA) to ensure compliance with cybersecurity measures required under federal contracts. Companies, research organizations, and other entities that maintain sensitive data pursuant to contracts with the federal government must be sure to comply with contractual cybersecurity requirements or face the prospect of a DOJ investigation.
On September 30, 2025, the DOJ announced that GTRC agreed to pay $875,000 to resolve allegations that it had violated the FCA by failing to meet federal cybersecurity requirements regarding the safeguarding of data in connection with government contracts. GTRC contracts with various government agencies, including the Air Force and Defense Advanced Research Projects Agency (DARPA), to perform research at Georgia Tech.
The Government began using the FCA to identify, investigate, and enforce cybersecurity noncompliance in 2021 and has recovered millions of dollars from companies and universities across several cases since then. With cyber threats continuing to evolve, the Civil Cyber-Fraud Initiative will remain a critical tool for the Government to leverage the FCA to address and deter cybersecurity lapses affecting government information and data.
The DOJ...
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