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ARTICLE · 08 APRIL 2025

Latest FCA Cybersecurity Settlement Shows Enforcement Remains A Priority Under Trump Administration

Foley & Lardner LLP
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A recent United States Department of Justice (DOJ) announcement reinforces that enforcement of cybersecurity requirements under the False Claims Act (FCA) remains an ongoing risk.

United StatesTechnology
Joseph W. Swanson
Joseph W. Swanson
Matthew D. Krueger
Matthew D. Krueger
Jason Mehta
Jason Mehta
Grace E. Stippich
Grace E. Stippich
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A recent United States Department of Justice (DOJ) announcement reinforces that enforcement of cybersecurity requirements under the False Claims Act (FCA) remains an ongoing risk. According to the press release, defense contractor MORSECORP Inc. (MORSE) agreed to pay US$4.6 million to resolve a FCA matter arising from a qui tam relator's suit alleging that MORSE failed to comply with certain U.S. Department of Defense (DOD) cybersecurity requirements. This is the most recent settlement involving DOJ cybersecurity enforcement, a topic that Foley reported on previously.

The MORSE Settlement

Qui tam relator Kevin Berich, MORSE's Head of Security, filed an FCA complaint against MORSE and its CEO in January 2023. MORSE is a software development company that had contracts and subcontracts with the U.S. Army and Air Force. Federal regulations dictate that DOD contracts like those entered into by MORSE require implementation of cybersecurity controls outlined in the

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