At the heels of a recent Civil Cyber-Fraud Initiative related to cybersecurity practices and the False Claims Act (FCA), a cybersecurity-related FCA case has survived a motion for summary judgment, teeing up a trial to determine if the defendants' cybersecurity compliance disclosures were materially incomplete and if any misstatements were knowingly made.
On February 1, 2022, U.S. District Judge William B. Shubb ruled on cross motions for summary judgment, holding that a promissory fraud claim under the FCA can continue because a genuine dispute of material fact exists regarding the extent to which Aerojet RocketDyne Inc. and Aerojet RocketDyne Holdings, Inc. (Aerojet) disclosed its noncompliance with contract provisions requiring it to safeguard information from cybersecurity threats and implement specific cybersecurity controls.
The case, United States ex rel. Markus v. Aerojet RocketDyne Holdings, Inc., was filed by Aerojet's former senior director of Cyber Security, Compliance, and Controls. He alleged that Aerojet entered into NASA and U.S. Department of Defense (DoD) contracts knowing it did not meet the minimum cybersecurity standards and subsequently failed to fully disclose its noncompliance with cybersecurity requirements under those contracts.
The former director bases his fraud claim, in part, on Aerojet's failure to disclose to NASA and DoD the results of annual cybersecurity audits, which found that Aerojet had several high, moderate, and low risk...
Log In Forgot Account? Rappler's Post 31m ยท #FactCheck#FactsFirstPH rappler.comFACT CHECK: Pangilinan not suspended from Senate after clash with Padilla All reactions: 52 6 comments 6 shares Like ...