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ARTICLE · 04 NOVEMBER 2024

Update – Penn State To Pay Up For Cyber-Related FCA Case

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On October 22, 2024, the Department of Justice ("DOJ") announced that Pennsylvania State University ("Penn State") has agreed to pay $1,250,000 to settle a False Claims Act ("FCA")...

United StatesTechnology
Townsend Bourne
Townsend Bourne
Nikole Snyder
Nikole Snyder
Sidney Howe*
Sidney Howe*
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On October 22, 2024, the Department of Justice ("DOJ") announced that Pennsylvania State University ("Penn State") has agreed to pay $1,250,000 to settle a False Claims Act ("FCA") case brought against the University approximately two years ago. The whistleblower in the case, former chief information officer of the Penn State Applied Research Laboratory, alleged that Penn State failed to comply with cybersecurity requirements in fifteen contracts and/or subcontracts with the Department of Defense ("DoD") and National Aeronautics and Space Administration ("NASA") between 2018 and 2023.

Specifically, the lawsuit (as discussed in our prior blog) contended that Penn State failed to provide "adequate security" for Covered Defense Information ("CDI"), as contractually required by the DFARS 252.204-7012 clause. Under this clause, "adequate security" is defined as (at least) implementing all 110 security controls outlined in the National Institute of

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