Cyber Whistleblowers—Eight Lessons from the First False Claims Act Settlements

21 July 2022
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On July 8, 2022, the U.S. Department of Justice (the “DOJ”) announced that Aerojet Rocketdyne (“Aerojet”), a California-based aerospace and defense contractor, agreed to pay $9 million to resolve allegations that it violated the False Claims Act (the “FCA”) by misrepresenting its compliance with cybersecurity requirements in federal government contracts. The DOJ’s announcement follows the court’s approval of a tentative settlement reached on April 27, 2022 by Aerojet and the whistleblower who filed the claims. This is the second settlement of cybersecurity-related FCA claims since the DOJ’s announcement of its new Civil Cyber-Fraud Initiative in October 2021, although the claims were brought against Aerojet well before the initiative was launched. Continue reading. . .