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ARTICLE · 31 OCTOBER 2024

DOJ Continues Crackdown On Cybersecurity Compliance With $1.25M FCA Settlement

Wiley Rein
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The Department of Justice (DOJ) secured another win for its Civil Cyber-Fraud Initiative last week when it resolved a False Claims Act (FCA) action alleging Pennsylvania State University (Penn State)...

United StatesTechnology
Brandon J. Moss
Brandon J. Moss
Elizabeth K. Drill
Elizabeth K. Drill

The Department of Justice (DOJ) secured another win for its Civil Cyber-Fraud Initiative last week when it resolved a False Claims Act (FCA) action1 alleging Pennsylvania State University (Penn State) failed to comply with cybersecurity requirements for more than a dozen Department of Defense (DoD) and National Aeronautics and Space Administration (NASA) contracts and subcontracts. The $1.25M resolution with the university comes two years after a chief information officer for Penn State's Applied Research Laboratory brought the case under the FCA's qui tam provisions. It also follows a prolonged stay the parties requested specifically to permit DOJ sufficient time to complete its investigation into the alleged conduct.

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