The details of a long-awaited conclusion to a civil lawsuit may strengthen the government’s position that it can leverage a 150-year-old law to go after companies that fail to comply with cybersecurity regulations spelled out in federal contracts. However, some federal and legal experts believe the victory should be seen as partial at best, signaling that more aggressive efforts to wield the False Claims Act at scale to influence contractor behavior will likely require additional long and costly battles in court.
In May, a lawsuit against aerospace and defense vendor Aerojet Rocketdyne filed under the False Claims Act was settled two days after it went to trial. Last week, court documents revealed key details for the settlement, with the company agreeing to pay a $9 million fine, including $2.61 million to Brian Marcus, the former employee who brought the suit on behalf of the government. The civil case, first brought forward in 2015, was based primarily on allegations that the company secured billions of dollars in federal contracts from the Department of Defense and NASA while fraudulently claiming they were complying with Federal Acquisition Regulations around cybersecurity.
Kellen Dwyer, a former deputy assistant attorney general at the Department of Justice, told SC Media the case and settlement is good news for the government, one that strengthens the legal basis for using the False Claims Act to pursue contractor cybersecurity malfeasance...
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