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ARTICLE · 21 APRIL 2025

Key Takeaways From DOJ's Continued Cybersecurity Enforcement

Bass, Berry & Sims PLC
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On March 25, the U.S. Department of Justice (DOJ) announced a $4.6 million settlement with MORSECORP, Inc. (MORSE) over its alleged failures...

United StatesTechnology
Denise M. Barnes
Denise M. Barnes
Taylor M. Sample
Taylor M. Sample

On March 25, the U.S. Department of Justice (DOJ) announced a $4.6 million settlement with MORSECORP, Inc. (MORSE) over its alleged failures to satisfy cybersecurity requirements for federal defense contractors.

Qui Tam Complaint

The case began in January 2023, when MORSE'S Head of Security and Facility Security Officer filed a qui tamcomplaint under the False Claims Act alleging that MORSE and its CEO fraudulently induced the federal government to award contracts worth tens of millions of dollars by making false representations about its cybersecurity compliance. According to the complaint, MORSE's senior executives knew of the "chronic failure" to comply with the Department of Defense (DoD)'s cybersecurity requirements, but chose not to devote resources to achieve compliance, which gave MORSE a competitive advantage over those who did expend such resources. The alleged compliance failures also rendered MORSE ineligible to perform the required work.

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